TaxTMI 
TaxTMI 
TaxTMI 
2018 (8) TMI 331
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.... imposed equal penalty under Rule 15(4) of the CENVAT Credit Rules, 2004 read with Section 78 of the Finance Act. 2. Briefly the facts of the present case are that the appellant is engaged in rendering various taxable services under Finance Act, 1994 and duly registered with the Service Tax Department under the categories of renting of immovable properties, commercial and industrial construction services, maintenance and repair service, management consultancy service, event management service and works contract service. During the period in dispute, the appellant has utilized CENVAT Credit on input services, namely, architects service, construction service, management consultancy service, real estate agent service and erection & commission....
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.... by a service provider for rendering taxable services, including renting of immovable property. He also submitted that the impugned order is contrary to Rule 2(l) of the CENVAT Credit Rules, 2004 which during the relevant period defined the expression "input service" both inclusively and exhaustively so as to encompass "any service used by a provider of taxable service for providing an output service, and includes services used in relation to setting up..... the premises of provider of output service or an office relating to such.... premises". He also submitted that the impugned order has not at all appreciated that the input services were eligible input services given the text of the statutory rules and credit related thereto ought not to....
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.... defended the impugned order. He further submitted that the Board Circular No. 98/01/2008 ST dated 04.01.2008, it is very clear that commercial or industrial construction service or works contract service is an input service for the output, namely, immovable property. Immovable property is neither subject to central excise duty nor Service Tax. Input credit of Service Tax can be taken only if the output service is liable to Service Tax or goods liable to excise duty. Since immovable property is neither service nor goods, input credit cannot be taken. He further submitted that the learned Commissioner has rightly followed Board Circular in view of the settled legal position by the Hon"ble Apex Court that the Board Circular is binding on the ....
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.... storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or Capital goods and outward transportation upto the place of removal." 6.1 From the above definition, it is clear that any service used by the service provider for providing an output service is admissible "input service". Input service specifically includes amongst other services used in relation to setting up of premises of the provider of output service or an office relating to such provider. From the definition, it is clear that the input service is not....
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....iction for availment of such credit. This decision squarely applies in this case and the impugned order is untenable in law. Further, the appellant relied on the decision in Mysore Holding Pvt. Ltd. Vs. CST, 2017 (52) STR 0070 (T) in which it has been held that CENVAT Credit on input services relating to construction activity, is allowable to real estate developers holding the Service Tax registration. The Tribunal followed the precedent in Infosys Ltd. Vs. Commissioner 2015 (37) STR 862 (T) in which it was held that the construction services used as input services for setting up a global training centre for rendering taxable services for commercial training and coaching, was admissible in law. The Tribunal also followed the Gujarat High Co....
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....it. 7.2 Further, we find in the case of Oberoi Mall Ltd. Vs. CST. 2017 (47) STR 292 in which the Tribunal held that credit relating to input services used to construct mall for renting of immovable property, would be available as CENVAT to the appellant for paying output tax liability on renting of immovable property. Further, we find in the case of CCE Vs. Ashok Agencies 2016 941) STR 647 (T) in which it was held that various input services such as engineering consultancy, construction services, erection, maintenance and installation and banking services utilized as input services to provide renting of immovable property would be available as input services to provide renting of immovable property would be available as input services as t....