TaxTMI 
TaxTMI 
2022 (12) TMI 139
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....osed of. Main case This appeal under Section 35G of the Central Excise Act, 1944 is directed against the order of the Customs, Excise and Service Tax Appellate Tribunal setting aside the order of the Commissioner whereby Cenvat Credit availed on inputs, input services and capital goods used for the period 01.06.2007 to 30.09.2010 for providing renting of immovable property services (output services) was denied. Appeal has been filed purportedly raising the following substantial questions of law:- (i) Whether Cenvat Credit could be availed on inputs, input services and capital goods used for construction of immovable properties? (ii) Whether commercial or industrial construction service or works contract service used ....
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....ut credit. After following procedure as regards issuance of show cause notices the Commissioner of Service Tax (ADJ) Delhi passed an order dated 28.06.2012 wherein Cenvat credit facility of inputs, input services and capital goods for providing "renting of immovable property services" was declined. Appeal filed by the respondent against the order of the Commissioner stands allowed vide impugned order dated 22.03.2018 (Annexure A-5) passed by the CESTAT. Learned Senior Standing Counsel for the appellant has argued that the services on which the noticee/respondent had claimed input service credit had been used in respect of erecting the same immovable property or for maintenance of the same which is subjected to "renting of immovable....
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....ectly 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 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." 3. ....
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....on service or works contract service is an input service for immovable property which is neither subjected to central excise duty nor to service tax. In this regard, the Commissioner referred to a CBEC Circular dated 04.01.2008. The Commissioner also held that the service tax paid on lease rentals is not covered under the "input service" as the same is not remotely connected to the manufacturing activity and that the nexus thereof with the manufacture of the final product is far-fetched as the same is not used directly or indirectly in or in relation to the final product i.e. Metal-sheet. 7. We are entirely in agreement with Mr. Amrinder Singh's submission on behalf of the respondents, that the Cenvat credit taken of the tax paid i....
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....ghtly contended that it was not the appellant's case that the services were not used for the setting up of the factory. The doubt in this regard is set at rest by the second part of Section 2(1)(ii) which includes within the ambit of the words 'input service' the setting up of a factory and the premises of the provider of the output service. The inclusive definition, therefore, puts the matter, at least so far as the payment for services rendered by the civil contractor for setting up the factory is concerned, beyond doubt. As the plain language of Section 2(1)(ii) indicates, the services mentioned therein are only illustrative. The words "includes services" establish the same. It can hardly be suggested that the lease rental is not for the....