TaxTMI 
TaxTMI 
2015 (12) TMI 1111
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....007. Subsequently they obtained centralized registration in Pune (which included Mumbai premises) in February 2011 under the taxable category of various services including the above two services of CICS and RIPS. They constructed a mall at Pune for which they received various input services and capital goods during the period June 2007 to March 2011. They filed ST-3 return without showing availment of input tax credit. However, they filed revised return for the period October 2010 to March 2011 on 21.7.2011 indicating availment of Cenvat Credit of service tax paid on input services and capital goods procured during the period June 2007 to March 2011. They had sold 20% of the constructed area and availed only balance credit of 80% on input services and capital goods. They submitted to the department the documents such as invoices etc. for verification of the eligibility of credit. A show cause notice was issued proposing to deny the credit on the ground that the appellant is not eligible for credit as input services have resulted in an immovable property which is neither excisable nor any service tax is payable on the same. In adjudication the demand of such service tax credit wrong....
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....e can be no verification of credit of services which were procured during previous 5 years. He placed reliance on the Apex Court judgement in the case of Govt. of India vs Citadel Fine Pharmaceuticals 1989 (42) ELT 515 (SC) which held that whenever there is inordinate delay it would be open to the assessee to contend that it is bad on the ground of delay. 5. We have carefully gone through the facts as well as submissions made by both sides. The factual position is that in 2011 the appellant declared their intention of availing Cenvat Credit on input services for discharging the service tax liability on the output service namely Renting of Immovable Property Service. There is no hiding the fact that these services were received over a period of 5 years from 2007 to 2011. And it was only when the construction was ready for renting out they took centralized registration in 2011. In the centralized registration the input service as well as the services to be provided were declared. We find that as held by the Hon'ble High Court of Karnataka in the case of mPortal India Wireless Solutions Pvt. Ltd., there is no provision in the Cenvat Credit Rules which imposes a restriction on av....
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....g services are provided by the assessee. Section 65(102) of the Finance Act defines "storage and warehousing" as to include storage and warehousing services for goods including liquids and gases but does not include any service provided for storage of agricultural produce or in service provided by cold storage. As per Section 65(105)(zza), read with Section 66 of the Finance Act, there shall be levied tax on storage and warehousing services at 12% of the value of taxable service. The service tax payable is determined in accordance 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- (i) 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, coo....
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....rt, one finds that the word "input" is defined to mean all goods, except light diesel oil, high speed diesel oil and 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. The crucial requirement, therefore, is that all goods "used in or in relation to the manufacture" of final products qualify as "input". This presupposes that the clement of "manufacture" must be present. 8. Yet again considering the inclusive part of the definition of "input", it was held as follows. All these considerations become relevant only when they are read with the expression "used in or in relation to the manufacture of final product" in the substantive/specific part of the definition. In each case it has to be established that inputs mentioned in the inclusive part is "used in or in relation to the manufacture of final product". It is the functional utility of the said item which would constitute the relevant consideration. Unless and until the said input is used in or in relation to the manufacture of final product within the factory of production, the said item would not become an eligible input. The sai....
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....ut service tax credit was availed at Pune, the invoices are addressed to their Bombay office. However this will not be a bar in availing the credit as the appellant had taken centralized registration at Pune before availing the credit and they did not avail credit on any input services in Mumbai as reflected in the relevant ST-3 returns. It was also submitted by them that there is no other project in the company. Therefore we find no reason to deny the credit on this ground. 6. On the apprehension raised of Revenue as to how the verification could have been done in respect of services procured during the previous five years, we find that the appellant had submitted all documents including invoices before issue of show cause notice which enabled the department to make such verification. We may further go on to say that in the show cause notice no doubt has been expressed regarding the actual receipt of the services. As regards the verification of actual use of the input services, we find that the Annexure "A" to the show cause notice gives details of Cenvat credit availed on inputs and capital goods for the period 1.6.2007 to 31.3.2011 implying that department has conceded that the....