Tribunal Allows Changes in Title Due to GST; Denies Cenvat Credit Pre-2005, Sets Aside Post-2005

The Tribunal allowed the Revenue's application to change the cause title due to the introduction of GST. Regarding the denial of Cenvat credit on construction services, the Tribunal upheld the denial prior to 16.06.2005 but set aside denials for the periods between 16.06.2005 and post 01.06.2007. The Tribunal also set aside the levy of service tax on electricity and water charges and fitout charges. Overall, the demand for service tax for the period from 16.06.2005 to March 2009 was set aside, except for the period prior to 16.06.2005 where the demand, interest, and penalty were upheld.

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Issues Involved:
1. Change of cause title due to introduction of GST.
2. Denial of Cenvat credit on construction services for different periods.
3. Levy of service tax on electricity and water charges.
4. Levy of service tax on fitout charges.

Issue-wise Detailed Analysis:

1. Change of Cause Title:
The Revenue filed a miscellaneous application (MA) to change the cause title from "Commissioner of Service Tax, Chennai" to "The Commissioner of GST & Central Excise, Chennai South Commissionerate" due to the introduction of GST and the resultant jurisdictional change. The Tribunal allowed this application.

2. Denial of Cenvat Credit on Construction Services:
- Prior to 16.06.2005: The credit amount of Rs. 5,16,774/- was confirmed as ineligible since the appellant was not providing any taxable service during this period. The appellant did not contest this portion, and the order was upheld.

- Between 16.06.2005 and 01.06.2007: The demand of Rs. 11,63,81,259/- was contested on the grounds that the appellant was providing Management, Maintenance, and Repair (MMR) services, which are taxable. The Tribunal found merit in the appellant's argument that they were eligible for credit on input services as per Rule 6(5) of the Cenvat Credit Rules, 2004, since these services were used for taxable output services. The denial of credit by the department was set aside.

- Post 01.06.2007: The disputed credit amount of Rs. 12,04,53,005/- was denied based on a Board Circular which stated that credit on construction services is not eligible. The Tribunal found this clarification flawed and held that the input services used for providing taxable output services (Renting of Immovable Property and MMR services) were eligible for credit. The denial of credit was set aside.

3. Levy of Service Tax on Electricity and Water Charges:
The appellant argued that electricity and water charges collected were reimbursable expenses and should not be subject to service tax. The Tribunal agreed, citing previous decisions (Plaza Maintenance and Services Ltd. and CST Chennai vs Sangamitra Services Agency) and set aside the levy of service tax on these charges.

4. Levy of Service Tax on Fitout Charges:
The impugned order demanded service tax on fitout charges amounting to Rs. 34,20,527/-. The appellant contended that these were charges for movable items (chairs, tables, etc.) and VAT had already been paid on the transaction. The Tribunal held that since VAT and service tax are mutually exclusive, the demand for service tax on the same transaction was unjust and set it aside.

Conclusion:
The Tribunal set aside the demand of service tax for the period from 16.06.2005 to March 2009 on all disputed areas, except for the period prior to 16.06.2005, where the demand, interest, and penalty were upheld. The appeal was partly allowed with consequential relief as per law.

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