Tribunal grants waiver on pre-deposit for denied Cenvat credit.

The Tribunal found in favor of the appellant in the case. They were granted a waiver on the pre-deposit condition for the demand related to denied Cenvat credit on service tax paid for input services used in property construction. Additionally, the Tribunal acknowledged the appellant's argument regarding the taxability of 'renting of immovable services' and waived the requirement for the balance amount pending appeal, as the appellant had paid the admitted duty liabilities. The stay petition was disposed of accordingly.

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Issues:
1. Availment of Cenvat credit on input services.
2. Taxability of 'renting of immovable services'.

Analysis:

*Availment of Cenvat credit on input services:*
The appellant, engaged in constructing a mall rented out to customers, faced a demand of Rs.69,95,300/- for denied Cenvat credit on service tax paid for input services. The lower authorities relied on a previous Tribunal decision in the case of Venus Investments, which was later modified to allow rectification. Another Tribunal decision in the case of Oberoi Mall Ltd. supported the appellant's entitlement to Cenvat credit for service tax on input services used in property construction. Consequently, the Tribunal found the appellant had a strong prima facie case, waiving the pre-deposit condition for the demand.

*Taxability of 'renting of immovable services':*
Regarding the demand of Rs.38,45,212/- for 'renting of immovable services', the appellant acknowledged their service tax liability but disputed the adjudicating authority's calculation based on billed amounts. The appellant argued that considering the actual rent received, the duty liability would be Rs.24,94,797/-. They had already paid a portion of this demand from their Cenvat credit and cash. Notably, their tenant, under a Supreme Court interim order, had deposited 50% of the service tax. The appellant contended that no further payment was due. Acknowledging these submissions, the Tribunal waived the requirement for the balance amount pending appeal, as the appellant had paid the admitted duty liabilities. The stay petition was thus disposed of accordingly.

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