Utilise Input on Single Time Premium Payment on Lease Land Purchase

[Pandiyan Perumal]

We Bought 99 years lease land in May 2016 and paid service tax as per the service tax Act. And Utilized the same as Input against our central excise payments. Now the GST team conduct audit and they say it is ineligible credit. Please advise us.

[KASTURI SETHI]

It appears that availment of Cenvat Credit fell under exclusion clause during that period. You are to prove that Cenvat Credit was utilized in or in relation to the manufacture and clearance dutiable final productn and at the same time such availment was not under exclusion clause. If you want comprehensive and fool-proof reply, pl. elaborate your query.

AI Summary

Party Challenges Ineligible Cenvat Credit Claim on 99-Year Lease Land Under GST Audit; Seeks Proof of Manufacture Use A party purchased 99-year lease land in May 2016 and paid service tax, utilizing it as input against central excise payments. During a GST audit, it was deemed ineligible credit. The respondent advised that the Cenvat Credit might fall under an exclusion clause and suggested proving that the credit was used in manufacturing and clearance of dutiable final products, without being under the exclusion clause. Further details were requested for a comprehensive response.