TaxTMI 
TaxTMI 
2019 (11) TMI 381
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....T Credit Rules, 2004. The credit which has been availed by them includes as "input service" service tax paid on renting of immovable property hired by them for their office premises. During the course of audit by the departmental officers, it was found that the appellant had rented the entire ground floor of a building for their office. However, they are only using one portion of the ground floor of the building for their office and allowed remaining portion of it to be used by their sister companies free of charge. Service tax paid on renting of immovable property is admissible as CENVAT Credit under CENVAT Credit Rule 2004 only if it becomes an input service for their output services. In the present case Revenue felt that the amount which....
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.... Aggrieved, the appellant appealed before the first appellate authority who dismissed their appeal on the ground of time bar and not having shown sufficient grounds for seeking condonation of delay before the first appellate authority. Aggrieved, the appellant appealed before this Tribunal who vide their Final Order No. A/30187/2018 dated 06.02.2018 condoned the delay and remanded the matter to the first appellate authority to decide the matter on merits. 3. Thereafter, by the impugned order, the first appellate authority upheld the order of the lower authority and rejected the appeal. Hence this appeal. 4. Learned counsel for the appellant would argue that there is no scope in the CENVAT Credit Rules 2004 to reduce proportionate amount o....
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....the facts of the case and explains that as opposed to the case of the lift maintenance or security or a porch light where the enjoyment by others is incidental to the utilisation of input service by the assessee themselves, in this case, the appellant, as can be seen from the rent agreement has rented the entire ground floor and paid rent for it. From the same premises i.e., ground floor of that building two other companies were also operating. The relevant proportion of the area enjoyed by these companies was not provided by the appellant despite department specifically asking for it. Under these circumstances, the learned adjudicating authority has fairly taken 1/3rd of the total service tax paid as input service credit and disallowed 2/3....