We bought 99 Years Leas land in domestic industrial area in 2016, and we utilized the service tax payments of lease land single time premium as input against our central excise payments.
But now the service tax department audit team is saying that this is ineligible input. Please suggest us with related rules and case laws if anything.
Cenvat credit eligibility for service tax on long-term lease premium challenged by revenue; guidance sought on rules and precedents. Taxpayer paid service tax on a single time premium for long term leasehold land and availed that service tax as CENVAT/input credit against central excise; audit asserts the input credit is ineligible and taxpayer seeks relevant rules and case law on eligibility of service tax on lease premium as input credit. (AI Summary)