Case Law Details
Urvashi Porwal
Brief of the Case
In the case of Nirlon Ltd. Vs. Commissioner of Central Excise,Mumbai, it was held that CENVAT credit of goods and services used to build an immovable property can be availed when such property has been given on rent and service tax liability is discharged on such rent received.
Facts of the Case
The relevant facts that arise for consideration are appellant herein had availed CENVAT credit of the service tax paid on the input services, goods and used the same for discharging service tax liability under the category of “Renting of Immovable Property Services” for the period April 2007 to March 2009. Revenue authorities were of the view that the appellant could not avail CENVAT credit on such input services and the goods as has been clarified by CBEC by Circular No.96/7/2007-ST dated 23.08.2007 and further amended by Circular No. 98/1/2008 ST holding that credit of service tax paid on input construction services is not eligible for availing CENVAT credit. Coming to such conclusion a show-cause notice was issued by invoking extended period for the demand of ineligible CENVAT credit along with interest and for imposition of penalties. Appellant contested the matter on merits as well as on limitation. The adjudicating authority after following due process of law rejected the contentions raised and confirmed the demands along with interest and also imposed penalties by relying on the CBEC Circular.
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has department gone in appeal against this cestat
judgement for nirlon input credit for construction taken against rent income output