Cenvat Credit Availment

[Asked by Guest]

Dear experts,
Pls resolve the following problems related to service tax and share the case laws associated to it, if any.
1. Whether cenvat credit of service tax can be availed on rental paid by company during the pre-operative period to owner whose premises would be used by service provider for providing restaurant services. The service tax relates to pre-operative period ranging from 4-5 months???
2. Whether cenvat credit would be available to service provider involved in providing renting of immovable property services for which he has received maintenance services in relation to impugned property during the period when his property was vacant.......??

Thanks in advance

Abhishek

AI Summary

Cenvat credit timing: pre operative input services may be claimable if nexus to future output exists, but risk of challenge remains.
Availability of Cenvat credit for rent and other pre operative services hinges on Rule 2(l) of the Cenvat Credit Rules, 2004: input services must be "used by a provider of output service for providing an output service." Forum contributors split: some accept credit for preparatory rent and renovation, with utilization deferred until output tax liability arises; others insist no credit where no taxable service was provided during the pre operative period. Jurisprudence is unsettled and reliance on central excise precedents is problematic; litigation risk is emphasized.