Commissioner of Central GST Vs DLF Ltd. (Punjab and Haryana High Court)
The Commissioner of Central GST filed an appeal under Section 35G of the Central Excise Act, 1944 against the CESTAT order setting aside the Commissioner’s decision denying Cenvat credit availed on inputs, input services and capital goods used during the period from 01.06.2007 to 30.09.2010 for providing renting of immovable property services.
DLF Ltd. was registered for providing various taxable services, including renting of immovable property services. The department had gathered intelligence that the respondent had discharged its Service Tax, Education Cess and Secondary and Higher Education Cess liability for renting of immovable property services through input credit.
Following issuance of show cause notices, the Commissioner of Service Tax (ADJ), Delhi, by order dated 28.06.2012, denied Cenvat credit on inputs, input services and capital goods used for providing renting of immovable property services. DLF appealed before the CESTAT, which allowed the appeal by order dated 22.03.2018.
The department challenged the CESTAT order before the Punjab and Haryana High Court, raising questions concerning whether Cenvat credit could be availed on inputs, input services and capital goods used for construction of immovable properties and whether commercial or industrial construction services or works contract services used for such construction qualified as input services for renting of immovable property services.
