2013 (10) TMI 912

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.... an industrial park. It availed CENVAT credit on the construction of the building amongst others. Show-cause notices dated 22.4.2010 and 8.10.2010 were issued proposing to deny CENVAT credit and of demand service tax along with interest and penalty for the period October 2005 to March 2010. By the impugned order, the Commissioner confirmed the demand of service tax and denial of CENVAT credit along with interest and also imposed penalty. The learned Senior Counsel placed a Table on details of demand as under:- S. No. Issues Period Amount (Rs.) 1. Denial of CENVAT credit on construction services Oct. 2005 to March 2010 23,73,56,255/-   2. Service Tax on electricity charges Oct. 2005 to March 2010 6....

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....providing output service on the immovable property. He also referred to other decisions of the Tribunal. 3.2 Regarding the denial of CENVAT credit of Rs.11,63,81,259/- utilized in Management, Maintenance or Repair Service, it is contended that the definition of 'input service' under Rule 2(l) of the CENVAT Credit Rules, 2004 provides any service used by a provider of taxable service for providing any output service includes service, used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service. He submits that in the present case the applicant used the input service to setting up the building and management, maintenance or repair service is the output service. He submits that th....

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....service. He submits that denial of credit for the period 16.6.2005 to 1.6.2007 on the utilization of the CENVAT credit on 'Management, Maintenance or Repair Service' is justified. He drew the attention of the Bench the list of various natures of the services as annexed to the compilation filed by the learned senior counsel. It is contended that the Commissioner has already dropped the demand of CENVAT credit on the input service utilized in the 'Management, Maintenance or Repair Service'. He submits that the list would show consulting engineering service, architect service, interior decorator service, insurance auxiliary service etc. cannot be related with 'Management, Maintenance or Repair Service'. 4.1 Regarding the denial of credit on....

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....r counsel. The Commissioner observed that after construction of the building, it became a source of collection of rent which became taxable service at a later period. In our considered view, the definition of 'input service' under Rule 2(l) of the CENVAT Credit Rules, 2004 provides 'any service used in relation to setting up, modernization, renovation or repairs of factory, premises of provider of output service'. There is no dispute that input service was utilized for setting up the building and after completion of the building the applicant used for renting of immovable property which is an output service. So the denial of credit on input service utilized on renting of immovable property, prima facie is not justified. The case law relied ....