TaxTMI 
TaxTMI 
TaxTMI 
2019 (4) TMI 327
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....edit in respect of inputs and input services exclusively used in the construction of said Hotel & Spa Project at Milroc Kadamba, which is illegal since the Appellant has not provided any output service in relation to construction of the hotel building to another person as defined under Section 65B(44) of the Finance Act, 1994. Therefore, the Cenvat Credit on inputs and input services used in such activity are not admissible to the appellant in terms of Rules 2(l)(i), 2(1)(A)(a) and Explanation III to Rule 6(3) of the Cenvat Credit Rules, 2004 r/w Section 66E(b) of the Finance Act, 1994. Accordingly two show cause notices were issued to the Appellant; (i) for the period from July, 2012 to February, 2014 for recovery of availment of inadmissi....
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....aring for the Revenue reiterated the findings recorded in the impugned order and submitted that the Appellant is not entitle to the cenvat credit since it relates to construction which is a declared service as defined under section 65B(22) of the Act and as the Appellant is not providing any output service in relation to construction of hotel building to another person therefore they cannot claim availment of any credit. 5. In order to appreciate the submission, Section 65B(22) and (44) are extracted as follows:- "65B. In this Chapter, unless the context otherwise requires, - ..... (22) 'declared service" means any activity carried out by a person for another person for consideration and declared as such under Section 66E; Xxx xxx....
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....e goods used in the manufacture of capital goods which are further used in the factory of the manufacturer;" "2(l) "input service" means any service- (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, su....
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....ce and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee". The term 'works contract' has been defined under Section 65B(54) of the Finance Act, 1994 as under:- "Works contract" means contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any moveable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property". ....
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....eceived various input services viz. air conditioning work, AMC, banking & insurance, consultancy charges, exhaust system, false ceiling, flooring, labours suppliers, painting, plumbing, security services etc.etc. and claimed cenvat credit of service tax paid on input services, which was denied by the department on the ground that the appellant therein is not eligible for credit as the input services have resulted in an immovable property which is not excisable nor any service tax is paid on the same and that the services have not been used for providing renting of immovable property service. This Tribunal while relying upon the decision of the Hon'ble High Court in the matter of Sai Sahmita Storages (P) Ltd. (supra) has held that almost the....