CENVAT credit on service tax charged by estate agent

[Yatin Bhopi]

We are manufacturer of organic chemicals. We are in the process of sale of our commercial property which was previously used as office premises, but this office is not in use since last 4-5 years. For the purpose of selling this property we have hired service of estate agent.  Now he has arranged for the sale of this property.

My query is:  Is CENVAT credit admissible on service tax charged by estate agent?

[Rajesh Nathoo]

Dear  Mr. Bhopi,

  Legislature is already reuctant to allow credit on office related expenditures to manufacturers .

In ur case , credit related to sale of office premises   by no strech of imagination has nexus with manufacturing activities .

So, I don,t think credit is admissible .

AI Summary

CENVAT credit inadmissibility for estate agent services lacking nexus with manufacturing activity, applied to office/property sale services. CENVAT credit on estate agent service tax is inadmissible where the agent's services relate solely to sale of office property and lack a direct nexus with the taxpayer's manufacturing activity; office-related or property-disposition expenses do not qualify as input services for manufacture.