VITP Private Limited Vs Commissioner of Central Tax (ITAT Hyderabad)
Held that we are inclined to allow the Cenvat Credit of input services for construction of immovable property, which is further let out to various customers.
Facts- The department denied Cenvat Credit on the input services used for the construction of the immovable property and also input services used for promoting their premises for better lease opportunities.
Conclusion- Tribunal in the case of CCE, Coimbatore Vs. Lakshmi Technology & Engineering Indus. Ltd. has held that without construction of the building, the renting of immovable property services, cannot be provided and that therefore, construction service is an eligible service for credit for providing output service of renting of immovable property.
Cenvat Credit on input services used for construction of property which is further let out is allowed.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
M/s. VITP Pvt.Ltd. (hereinafter referred to as the Appellant) is presently engaged in the business of development of IT Parks and such other industrial and commercial places which are subsequently given on rent to a wide spectrum of industries.
2. The facts of the case in brief are that the Service Tax Audit was conducted by the audit team led by the Superintendent, Service Tax, Group-VII, Hyderabad-IV Commissionerate covering the transactions of the Appellant. The disputes arising in all the four Appeals pertain to the period from June 2007 to June 2013 and some issues are common in these Appeals. Hence all the four Appeals are taken up together and are being disposed by this common order. For better appreciation of facts, a table has been reproduced below which shows the issues before us in details in each of the Appeal:-
