2016 (12) TMI 97

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....ith section 73(2) of Finance Act, 1944, demanded interest thereon and imposed penalty of like amount under section 78 of Finance Act, 1944. 2. Appellant, who is a provider of ' rental of immovable property service', had availed CENVAT credit of tax of Rs. 64,24,327 paid for receiving 'repair and maintenance', consultancy' courier' , 'telephone', 'office rent' etc services between 1st October 2008 and 30th September 2013. The appellant owns a building with an area of Rs. 2,92,105 sq feet spread over six floors and, admittedly, the building was occupied by tenants, with occupancy rates between 40% and 92%, during this period. Both lower authorities have held that credit availment is permissible only to....

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....that portion of the service for which it was not the ultimate recipient, was not entitled to claim the benefit of set-off by availment of CENVAT credit. 4. In the matter of the appellant before me, it is not the case of Revenue that they were utilizing any portion of the space for themselves. The entire property was on offer for rendering the 'renting of immoveable property service' and, to the extent that it was occupied at different times, the services utilized at the premises are attributable to the area available for rent. It would be akin to forbidding a manufacturer from utilizing CENVAT credit on inputs that are yet lying in stock on the ground that these have not been used in the products on whose clearance CENVAT credit wa....