2015 (9) TMI 101

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....-COM-022-13-14 dated 14.03.2014 whereby CENVAT Credit availed by the appellant in respect of Lease Rent paid to the Bank for the Sugar factory belonging to the Borrower M/s Tasgaon SSK Ltd., has been disallowed. 2. The brief facts are that M/s Tasgaon SSK Ltd. was a Borrower and Maharashtra State Cooperative Bank was the Lender. As the said borrower had defaulted in repayment of loan, the Bank in exercise of its power under Section 13(4) of the 'Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002' (SRFAESI Act in short) occupied the position (took over possession) of the factory from the said borrower. Subsequent to the possession by the Bank, the Bank have leased out the factory premi....

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.... applied towards satisfaction of the dues of M.S.C. Bank on account of the Borrower". 2.1 Further fact is that as agreed by the Lessor Bank and the appellant Lessee, as Service Tax was applicable on the amount of lease rent, the appellant deposited the lease rent to the Bank and the challans were deposited in the name of original borrower/defaultee, who was registered under the provisions of Service Tax and who is actual owner of the leased premises. 2.2 Vide show-cause notice dated 5.8.2013, the CENVAT Credit taken by the appellant was objected to by the Revenue as the Revenue felt that firstly the property taken by the Bank in the legal authority and was independently leased out to the assessee/appellant, the Bank was the person whi....

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....ith all costs, charges and expenses incurred by him are tendered to the secured creditor asset shall not be sold or transferred by the secured creditor, and no further step shall be taken by him for transfer or sale of that secured asset. Further, sub-section (7) of Section 13 provides that secured asset shall, in the absence of any contract to the contrary, be held by him in trust, to be applied, firstly, in payment of such costs, charges and expenses and secondly, in discharge of the dues of the secured creditor and the residue of the money so received shall be paid to the person entitled thereto in accordance with the rights and interests. Further, sub-section (4) of Section 15 provides that the management of the business of a borrower, ....