Appellant granted CENVAT credit for constructing commercial complex for renting immovable property

The Tribunal ruled in favor of the appellant, recognizing their entitlement to CENVAT credit on inputs and input services used in constructing a commercial complex for the output service of 'renting of immovable property.' The Tribunal considered precedents and High Court rulings supporting the appellant's position, allowing the appeals with consequential benefits and setting aside the impugned order against the appellant.

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Issues: Whether the appellant, an output service provider under 'renting of immovable properties,' is entitled to CENVAT credit on input and input services consumed in the construction of a commercial complex.

Analysis:
1. Issue of CENVAT Credit Entitlement: The Tribunal examined whether the appellant, as an output service provider in the 'renting of immovable properties' category, could claim CENVAT credit on inputs and input services utilized for constructing a commercial complex. The appellant's counsel referenced a precedent order by a Co-ordinate Bench in Golflinks Software Park Pvt. Ltd. Vs CCE, where a similar issue was decided in favor of the appellant. Additionally, the counsel cited the ruling of the Hon'ble Andhra Pradesh High Court in CCE Vs Sai Sahmita Storages (P) Ltd, which further supported the appellant's entitlement to CENVAT credit. The Tribunal noted that the issue regarding inputs had been settled in favor of the appellant/assessee by the High Court's ruling, and the Revenue's appeal against it was withdrawn by the Supreme Court. The Tribunal also considered other relevant cases cited by the appellant's counsel to support the claim for CENVAT credit.

2. Revenue's Position: The Authorized Representative for the Revenue relied on the impugned order, presenting the Revenue's stance on the matter.

3. Tribunal's Decision: After considering the submissions from both parties and reviewing the impugned order, the Tribunal concluded that the period in dispute was before 1st April 2011. Therefore, the appellant was deemed entitled to CENVAT credit on both inputs and input services used in constructing the complex for the output service of 'renting of immovable property.' Citing the rulings of various High Courts in favor of the appellant, the Tribunal allowed the appeals with consequential benefits and set aside the impugned order against the appellant.

In summary, the Tribunal ruled in favor of the appellant, recognizing their entitlement to CENVAT credit on inputs and input services utilized for constructing a commercial complex for the output service of 'renting of immovable property,' based on precedents and High Court rulings supporting the appellant's position.

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