2023 (9) TMI 769 - AT - Service Tax

CENVAT Credit - input services - Renting of Immovable Property Services - denial on the ground that the service being the right to use service, hence credit availed on various input services are not admissible - non-payment of service tax on sale of space or time for advertisement service. CENVAT Credit - HELD THAT - Admissibility of CENVAT Credit which was proposed to denied on the basis of Circular No. 98/1/2008-ST dated 04.01.2008 has been considered by this Tribunal in various judgments. This Bench in the case of GOLFLINKS SOFTWARE PARK PVT LTD VERSUS C.C.E C.S.T. -BANGALORE 2018 (8) TMI 331 - CESTAT BANGALORE has observed that From the definition of input service, it is clear that the input service is not limited to the services for providing output service but it also includes the services for setting up the premises of provider of output service - thus there are no reason not to accept the aforesaid findings of the Tribunal on the aforesaid issue as the said judgment has been approved by the Hon ble Karnataka High Court in COMMISSIONER OF SERVICE TAX VERSUS M/S. GOLFLINKS SOFTWARE PARK PVT LTD. 2022 (12) TMI 472 - KARNATAKA HIGH COURT - Accordingly, the impugned order denying CENVAT Credit on the various input services used in providing Renting of Immovable Property Services is hereby set aside and the credit on this account is to be admissible. Demand against sale of space or time for advertisement - HELD THAT - The learned Commissioner has not recorded any findings on the said issue even though the appellants pleaded before him that levy of Service Tax on the said alleged service is unsustainable. In this circumstance, it is prudent to remand the matter to the adjudicating authority to examine the said issue. The matter is remanded to the adjudicating authority only to the extent of examining the issue of levy of service tax on sale of space or time for advertisement service relating to Show Cause Notice No. 61/2010 dated 12.04.2010 - Other part of demand set aside - appeal allowed in part and part matter on remand.

Summary

Issues Involved:
- Admissibility of CENVAT Credit on input services for 'Renting of Immovable Property Services'
- Leviability of Service Tax for 'sale of space or time for advertisement service'

On the issue of admissibility of CENVAT Credit, the Tribunal considered various judgments and held that input services used for providing output services like renting of immovable property are eligible for CENVAT Credit. The Tribunal cited precedents where similar input services were deemed admissible for CENVAT Credit, emphasizing that the Circular relied upon by the Revenue was contrary to statute law. The Tribunal found in favor of the appellant based on established legal principles and set aside the order denying CENVAT Credit, as upheld by the Karnataka High Court.

Regarding the second issue of levying Service Tax on 'sale of space or time for advertisement service', the Tribunal noted that the Commissioner did not provide any findings on this matter despite the appellants' plea against the tax levy. Consequently, the Tribunal decided to remand this specific issue back to the adjudicating authority for further examination.

In conclusion, the appeals were disposed of by allowing the admissibility of CENVAT Credit for input services related to 'Renting of Immovable Property Services' and remanding the issue of levying Service Tax on 'sale of space or time for advertisement service' for further consideration by the adjudicating authority.