DLF Cyber City Developers Limited Vs Commissioner of Central Excise & Service Tax (CESTAT Chandigarh)
CESTAT Chandigarh held that CENVAT Credit in respect of input / input services used for construction of building which itself is to be used in the provision of output service of Renting of Immovable Property is admissible. Accordingly, order is set aside and appeal is allowed.
Facts- The appellant is engaged in the provision of taxable services in the categories of “Transportation of Goods by Road”, “Advertisement Services” and “Renting of Immovable Property”. The Department entertained a view that the appellant has availed and utilized inadmissible CENVAT credit on input, input services and capital goods in violation of CCR, 2004.
Commissioner concluded that the appellant was not entitled to avail CENVAT credit on inputs, input services and capital goods in the construction of immovable properties. Commissioner further held that the appellant has availed and utilized CENVAT credit on tax/ duty paid on input services and inputs which are inadmissible to the Appellant, for discharging service tax liability on “Renting of Immovable Property Service”. The alleged inadmissibility is on the ground that the inputs, and taxable services received by the Appellant are for the purpose of construction of the immovable property which is neither excisable nor a taxable service. Hence, the present appeal.
