TaxTMI 
TaxTMI 
2014 (9) TMI 35
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....used for making of immovable property, which is further put to renting of immovable property service, will be admissible or not. Adjudicating authority under different Orders-in- Original held that such credit will be admissible as the inputs, capital goods and input services are availed in or in relation to creation of a property which is used for providing of output services i.e. renting of immovable properties. Adjudicating authority dropped the proceedings against the appellants. However, the same were reviewed by the Commissioner Central Excise & Customs, Vadodara-II under the above mentioned Orders-in-Revision by holding that immovable property is neither service nor goods in view of the CBEC Circular No. 98/1/2008-ST dated 04.1.2008.....
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....e orders passed by the revisionary authority. 4. Heard both sides and perused the case records. So far as admissibility of CENVAT credit on inputs and input services used for creation of immovable property, which is subsequently subject to service tax under renting of immovable property, is concerned. It is observed that the issue is no more res-integra as held by this bench in the case of Navratna S.G. Highway Prop. Pvt. Limited (supra). In Para 3, 3.1 and 3.2 of this judgment, after relying upon the definition of inputs and input services given in Rule 2 (k) and 2 (l) of the Cenvat Credit Rules, bench held as follows:- 3. We have considered the submissions made by both the sides. In t....
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....e (xviii) Repair and Maintenance Service (xix) Business Auxiliary Service (xx) Courier Service (xxi) Erection and Commissioning Service used for elevators and CCTV. (xxii) Airtime Charges (xxiii) Caterer Service (xxiv) Import of Services (xxv) Telecommunication Service (xxvi) Design Service Agency Service 3.1 The Revenue has relied upon the definition of 'input services' as given in Rule 2(l)(i) of CENVAT Credit Rules, 2004 which reads as unde....
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....dance with Section 67(4) read with the Service Tax Rules, 1994 made in exercise of the powers under Section 94 of the Finance Act. There is no dispute that every provider of taxable service is entitled to claim CENVAT credit in relation to input service. Rule 2(k) and (l) of the Rules are relevant and they read as under. 2. Definitions. - (k) 'input'means - all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, g....
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.... inputs or capital goods and outward transportation up to the place of removal. 7. A plain reading of both the above definitions would show that, unless excluded, rail goods used in relation to manufacture of final product or for any other purpose used by a provider of taxable service for providing an output service are eligible for CENVAT credit. In Maruti Suzuki Ltd. v. Commissioner of Central Excise, Delhi-III, (2009) 9 SCC 193 = 2009 (240) E.L.T. 641 (S.C.) the Supreme Court laid down as follows : 9. Coming to the statutory definition of the word 'input' in Rule 2(g) in the CENVAT Credit Rules, 2002, it may be noted that the said definition of the word 'input' can be divided into three parts namely : (i....