Entertainment world Developers Private Ltd. Vs Commissioner, Customs, Central Excise and Service Tax (CESTAT Delhi)
The issue under consideration is whether the disallowance of input tax credit against service is justified in law?
Learned Counsel further urges that there is no specific disallowance for any specific head of input service received by them, and evidently input service credit was disallowed under the wrong impression that the Mall of the appellant is still under construction. Accordingly, he prays for allowing the appeal setting aside the impugned order.
Having considered the rival contentions, we find that the appellant is entitled to input service credit of Rs. 49,91,591/- in dispute. All the services in question are eligible input services for rendering of output services. There is no dispute as regards receipt of any of the input services.
CESTAT states that, as regards the demand of service tax, they find that the said amount is also not tenable as the said demand was prima facie raised under the impression that the appellant is not entitled to cenvat credit. Further, they find that the appellant have deposited the service tax as per their calculation and is also evident from the calculation chart and the payment challans brought on record vide miscellaneous application, which was earlier allowed vide order dated 03.12.2019. CESTAT further find that Revenue have not pleaded that the VCES application filed by the appellant on 24.12.2013 for tax dues upto December, 2012 have been rejected. Even otherwise the appellant have deposited all the taxes, as is evident.
Appellant is entitled to input service credit of Rs. 49,91,591/- in dispute. All the services in question are eligible input services for rendering of output services. There is no dispute as regards receipt of any of the input services.
FULL TEXT OF THE CESTAT JUDGEMENT
The appellant – M/s Entertainment world Developers Pvt. Limited have set up a Shopping Mall cum Entertainment World known as ‘Treasure Island’, which is in operation since December, 2005 after completion of the construction. The appellant is registered with the Service Tax Department for various services including Renting of Immovable Property, Selling of space or time slots, Maintenance or repairs etc. They also availed input service credit with respect to various input service received for rendering the output services. The appellant have been filling their returns regularly in Form ST-3. As per their returns, they have taken cenvat credit and utilised the same as follows:-
