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2018 (4) TMI 1042 - AT - Service TaxCENVAT credit - Renting of Immovable Property service - input/input services - Cement Glass and Steel - Architect Services - Work Contract Service - Held that - the issue is no more res-integra and the same has been settled through the ruling by Hon ble High Court of Andhra Pradesh at Hyderabad in Commissioner of Central Excise Visakhapatnam-II vs. Sai Sahmita Storages (P) Ltd. 2011 (2) TMI 400 - ANDHRA PRADESH HIGH COURT wherein it was held that unless excluded all goods used in relation to manufacture of final product and for any other purpose used by a provider of taxable service for providing an output service are eligible for Cenvat Credit. The appellant was entitled for Cenvat Credit - appeal allowed - decided in favor of appellant.
Issues:
Admissibility of Cenvat Credit for service tax on renting of immovable property service. Analysis: The appeal arose from an Order-in-Original issued by the Commissioner of Central Excise & Service Tax, Noida, regarding the admissibility of Cenvat Credit for service tax on renting of immovable property service. The appellant had utilized Cenvat Credit of Central Excise Duty and Service Tax paid on various services for the period from 2007-08 to 2010-11. The Revenue contended that the Cenvat Credit was not admissible for service tax on renting of immovable property. A show cause notice was issued proposing to disallow the Cenvat Credit and recover service tax. The appellant contested the issue, leading to the impugned Order-in-Original confirming the proposals and imposing a penalty. The appellant argued that the issue was settled based on a ruling by the Hon'ble High Court of Andhra Pradesh and a decision by a Single Member Bench of the Tribunal. The High Court ruling emphasized that goods used by a provider of taxable service for providing an output service are eligible for Cenvat Credit. The Tribunal decision held that since inputs and input services were used for construction of a building let out by the appellant, the appellant was entitled to avail the Cenvat Credit. The appellant requested the impugned Order-in-Original to be set aside based on these precedents. After considering the arguments and the case laws cited, the Tribunal found that the issue was no longer res-integra. Relying on the High Court ruling and the Tribunal decision, the Tribunal held that the appellant was entitled to Cenvat Credit for Central Excise Duty and Service Tax paid on various services for the service tax on renting of immovable property service. Consequently, the impugned Order-in-Original was set aside, and the appeal was allowed. The appellant was granted consequential relief as per the law, and the MISC Application was disposed of as infructuous.
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