2016 (7) TMI 1220 - AT - Service Tax

Cenvat credit - service tax paid on availment of security service renting of immovable property and maintenance of sales office - Held that - to protect the property relevant to business the security service is admissible input service to be eligible for CENVAT credit. When the very property is used for the purposes of carrying on business there is no reason to disallow CENVAT credit of the service tax paid in respect of renting of immovable property. So far as the maintenance of sales office is concerned there is no nexus establishing correlation between input service and output service or output. Accordingly there shall be no admissibility of CENVAT credit on service tax paid on this count. - Decided partly in favour of appellant

Summary

The Appellate Tribunal CESTAT Chennai allowed the appeal partly. CENVAT credit was allowed for security service and renting of immovable property, but not for maintenance of sales office due to lack of nexus between input and output services.