2016 (11) TMI 194

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....was noticed that appellant had availed inadmissible CENVAT credit and were not paying service tax on the commission received from Indian Oil Corporation Ltd., (IOCL).  After recording statements of the General Manager & the Director and scrutiny of balance sheet etc, a show-cause notice dated 10.07.2009 was issued for demand of service tax liability and also for reversal of CENVAT credit wrongly availed.  The appellant contested the show-cause notice on the ground that the CENVAT credit was availed on construction services for the period 01.06.2007 to 30.09.2008 as they were registered under "renting of immovable property and construction services" and were utilized for construction of shops/property which was rented out; the dema....

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....s P. Ltd. - 2011 (23) STR 341 (A.P.) wherein the Hon'ble High Court of  Andhra Pradesh has upheld the Tribunal's order of allowing CENVAT credit on cement and steel which was used for construction of cold storage and the said cold storage was rented out and tax liability was discharged under warehousing services. 4. Learned D.R. on the other hand, submits that the Board's Circular No. 98/01/2008 dated 04.01.2008 has categorically clarified that input services i.e. construction service has not been used for providing output services and it has been used directly for construction of immovable property which is subsequently let out hence the cenvat credit chain is broken.  He submits that Hon'ble High Court of  Bombay i....

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....act that the appellant had received the services from the service provider for the construction of pre-fabricated building; which was used by appellant for renting out the premises to various outlets and appellant had discharged the service tax liability on such amounts under the category of 'Renting of Immovable Property Services'.  On this factual background, we find that the view expressed by the Revenue in the order-in-original as well as order-in-appeal and the arguments put forth by learned A.R. are not acceptable on the face of the fact that similar and identical issue has been decided by various High Courts and the Tribunal.  In the case of Navratna S.G. Highway Prop P. Ltd. (supra) and Oberoi Mall Ltd. (supra),  we f....