2011 (2) TMI 1275

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....f immovable property coming under Section 65(105) (zzzz) of Finance Act, 1994. The respondents have availed credit of excise duty paid on capital goods and inputs and service tax paid on input service. They have used the credit in CENVAT account for paying excise duty on the excisable goods cleared by them and also for paying service tax on the services rendered under the category of "Renting of Immovable Property". Show Cause Notice was issued alleging that the capital goods, inputs and input services on which credit was taken has no nexus with the renting of immovable property service and therefore the CENVAT credit could not be utilized by them and accordingly proposing demand of service tax of Rs.1,99,801/- along with interest and propo....

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....uction or works contract service used for construction of an immovable property, could be treated as input service for the output service namely renting of immovable property service under the CENVAT Credit Rules, 2004?"     Classification     'Input credit of service tax can be taken only if the output is a 'service' liable to service tax or a 'goods' liable to excise duty. Since immovable property is neither 'service' or 'goods' as referred to above, input credit cannot be taken'. 5. Learned authorized representative strongly supports the order of the Commissioner (Appeals). 6. I have carefully considered the submissions from both sides and perused the records. Rule 3(1) of the CENVAT Credit Rules permits....