2014 (12) TMI 462 - AT - Service Tax

Waiver of pre deposit - Cenvat credit - input services - construction of a technology park for renting out for various firms and service - Held that - services are definitely relatable services and have been used for construction of the premises. We have also find reliance placed on the decisions in the case of Navratan SG Highway Properties Pvt. Ltd. Vs. CST, Ahmedabad - 2012 (7) TMI 316 - CESTAT, AHMEDABAD and C.C.E, Visakhapatnam-II vs. Sai Samhita Storages (P) Ltd. 2011 (2) TMI 400 - ANDHRA PRADESH HIGH COURT is applicable to the facts of this case. - issue relates to liability of various services for the period before construction was completed and even in that case, exemption for construction service and other services were held to be eligible - appellant has made out a prima facie case for complete waiver of pre-deposit of the adjudged dues. Accordingly, requirement of pre-deposit of waived and stay against recovery is granted during pendency of the appeal. - Stay granted.

Summary

Issues:
Admissibility of Cenvat credit for services availed during the construction of a technology park for renting out.

Analysis:
The judgment revolves around the admissibility of Cenvat credit amounting to Rs. 51,69,026/- for services availed during the construction of a technology park for renting out to various firms. The appellant contended that they are eligible for the benefit of Cenvat credit for the services utilized. A detailed table was presented categorizing the services availed, such as Real Estate Agent's Services, Management, Maintenance or Repair Services, Works Contract Services, and more, with specific explanations for each service's relevance to the construction and rental process.

The Tribunal examined the details provided by the appellant and acknowledged that the services were indeed utilized for the construction of the premises. The appellant relied on precedents like Navratan SG Highway Properties Pvt. Ltd. Vs. CST, Ahmedabad and C.C.E, Visakhapatnam-II vs. Sai Samhita Storages (P) Ltd. to support their claim of admissibility of Cenvat credit for the services in question.

The Revenue, represented by the A.R., referred to a previous case involving the same appellant where a deposit was directed. However, the Tribunal distinguished the current case from the cited precedent, emphasizing that the issue in the previous case was different and did not affect the admissibility of Cenvat credit for the services utilized during the construction period. Consequently, the Tribunal found merit in the appellant's case and granted a waiver of pre-deposit of the adjudged dues along with a stay against recovery during the appeal's pendency.

In conclusion, the judgment highlights the importance of establishing the direct relevance of services availed during the construction phase to claim Cenvat credit successfully. The Tribunal's decision to grant a waiver and stay against recovery indicates a favorable stance towards the appellant's contention regarding the admissibility of Cenvat credit for the services utilized in constructing the technology park for renting out.