2013 (8) TMI 1087 - AT - Central Excise

Summary

Issues involved: Denial of CENVAT credit of service tax for Renting of Immovable Property Service availed by the appellant in relation to their Sales Office.

Summary:
The appellant's CENVAT credit of service tax for Renting of Immovable Property Service for their Sales Office was denied due to lack of nexus with manufacturing activities. The appellant argued that the office also accommodated various departments and was registered as an input service distributor. They cited precedents where similar credits were allowed. The lower authorities assumed the office was solely a sales office, leading to the denial of credit only up to the place of removal. The Authorized Representative contended that the credit was rightly denied as it was taken only for the sales office. The Tribunal found that the appellant's submissions were not adequately considered by the lower authorities. As the office accommodated various departments, it was deemed to have a relationship with manufacturing activities, making the appellant eligible for the CENVAT credit. The Tribunal also found the cited precedents applicable to the case, leading to the allowance of both appeals.