2016 (12) TMI 97

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....ule 14 of CENVAT Credit Rules, 2004 read with 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 1^st October 2008 and 30^th 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 hel....

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....ext of the area taken on rent. Not unnaturally, 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 i....

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....om this definition. The first appellate authority has cited the decision of Tribunal in M/s Dai-Ichi Karkaria Ltd v. Commissioner of Central Excise, Pune -I [2015 (37) STR 29 (Tri-Mumbai)] to explain 'one-to-one' correlation without appreciating that the same decision has, in a manner of speaking, outlined the limit of nexus that may be held to the detriment of an assessee. 6. The availment of credit is derived from rule 3 of CENVAT Credit Rules, 2004 and, as the taxes have been paid on common services used for property that is not in use by the appellant as recipient of service, availament of CENVAT credit is within the scope of the Rules. 7. The decision of the Tribunal in Godrej & Boyce Manufacturing Co Ltd v. Commissioner ....