2017 (7) TMI 724

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...., 29242190 of the Central Excise Act, 1985. The appellant have rented out open space of the factory premises during the period 2007-08 & 2008-09. The case of the department is that the appellant is liable to pay service tax on the rent of leased out premises of the factory under renting of immoveable property service and the appellant is not entitled for the exemption notification No. 06/2005-ST dt. 1.3.2005. They violated the Condition No. (iii) & (iv) of paragraph 2 of the Notification on the ground that the appellant have availed the cenvat credit on capital goods and inputs received during the said period. 2. Shri Rajiv Luthia, Ld. Chartered Accountant appearing on behalf of the appellant submits that the renting of open space of the....

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.... premises for which they received the rent. There is no dispute that rent in the individual year of 2007-08 and 2008-09 is below threshold limit of Rs. 8 lakhs. The appellant claim that they are entitled for the exemption under benefit of notification No. 06/2005-ST dt. 1.3.2005. The relevant clause (iii) & (iv) of para 2 of the Notification reads as under: "(iii) the provider of taxable service shall not avail the CENVAT credit under rule 3 of the said rules, on capital goods received in the premises of provider of such taxable service during the period in which the service provider avails exemption from payment of service tax under this notification; (iv) the provider of taxable service shall avail the CENVAT credit only on such inp....