TaxTMI 
TaxTMI 
TaxTMI 
2016 (11) TMI 587
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.... the appellant constructed a building/factory for the manufacture of excisable goods and also installed the machinery therein. The appellant could not manufacture anything in their factory but during that period they received certain input services namely construction service, installation of machinery etc. Later on, the said factory was let out in June'2007 and rent was received from the tenants, The Revenue of the view is that the input service availed by the appellant to the tune of Rs. 20,84,900/- is not input service as per rule 2(1) of the CCR, 2004 as well as per the CBEC circular 98/1/2008-ST dated 04.01.2008. It was further observed that for the period April 2009 to March' 2010, the appellant has not paid service tax, there....
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.... the category of renting of immovable property service, But, later on the appellant has paid service tax along with interest therefore, no penalty imposable on the appellant on its accounts. 4. On the other hand, the Ld. AR reiterated the finding in the impugned order. 5. Heard the parties and considered the submissions. 6. On careful consideration submissions made by the following issues. (A) Whether the cenvat credit on construction services is available to the appellant or not? (B) Whether the penalty can be imposed on the appellant from April' 2009 to March' 2010? 7. The issue of availment of cenvat credit on construction services was came up before this Tribunal in the case of Maharashtra Cricket Association (Supra) where....
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...., inward transportation of inputs or Capital goods and outward transportation upto the place of removal." From the above definition of input service, any service used by a provider of taxable service for providing an output service is admissible 'input service' n Input service specifically includes amongst others services used in relation to setting up, premises of provider of output service or an office relating to such premises. On the analysis of the definition, it becomes dear that the 'input service' is not limited to the services for providing output service, but it also includes the service for setting up the premises of provider of output service. In the present case the input services are Architect Services, Consul....
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....he identical case allowed the Cenvat Credit on the input services used for construction of immovable properly which in turn used for renting and other services. The operative para is reproduced below: 3.2 The definition of 'inputs' is limited to the definition of 'input services' as can be seen from the definition given above. Credit of duty paid on inputs is available when the inputs are used for providing an l output service'. Therefore, there is a need to say that the inputs have been used for providing an 'output service'. In the case of input service, the definition includes input services used by a provider of taxable service for providing an output service. Therefore the definition of inputs and input ser....
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....use of cement & TM T bars 'storage and warehouse services' could not have been provided, accordingly Cenvat credit was allowed on cement and TMT bars. In view of the above findings, not only by this Tribunal but also endorsed by the Hon'ble High Court of Andhra Pradesh that the Cenvat credit on inputs and input services are admissible for construction, which is used for providing output services. We are also of the considered view that in the present case the appellant has clearly entitled for cenvat credit in respect of all the services used for construction/setting up the stadium which is admittedly used for providing the output services. 8. The said order was followed by Nir/on Ltd v, CCE (Supra) Further, in the case of CCE ....