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Issues involved: Service tax demand on renting of immovable property and supply of tangible goods for use, entitlement to Cenvat credit, payment of VAT liability on tangible goods supplied.
Service tax demand on renting of immovable property: The appellant, a hospitality company, was providing renting services and supplying tangible goods to another company. The department issued a show cause notice for service tax demands totaling &8377; 65,97,432/- for renting services and &8377; 25,66,027/- for tangible goods supply. The appellant contested the notice, claiming payment made in cash and through Cenvat credit account. The adjudicating authority confirmed the demands due to lack of valid documents for Cenvat credit and VAT payment on tangible goods. Entitlement to Cenvat credit: The appellant argued that they were entitled to Cenvat credit on service tax paid for rented premises as they had leased the premises from parties who charged service tax. They also claimed to have discharged VAT liability on tangible goods supplied. However, no relevant documents were produced before the adjudicating authority. The matter was to be reconsidered based on submitted evidence. Payment of VAT liability on tangible goods supplied: The appellant contended that they had paid VAT on tangible goods supplied, thus not liable for service tax. Lack of evidence before the adjudicating authority led to the matter being remanded for fresh consideration. The appellant was directed to submit all relevant evidences within 30 days for the adjudicating authority's review, failure to do so would result in a decision based on available records. Conclusion: The appeal was allowed by way of remand for further review and decision based on submitted evidences regarding entitlement to Cenvat credit and payment of service tax on tangible goods supplied.
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