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TMI Blog2017 (9) TMI 1190X X X X Extracts X X X X X X X X Extracts X X X X ..... ld labour huts at the site where the appellant have constructed their business centre/convention centre - input services - Held that: - dismantling of old labour huts/units, post construction is an essential expenditure for providing the output services by the appellant and as such the Service Tax paid/incurred is also eligible for input credit - credit allowed. CENVAT credit - laying cable from Sub Station to the appellants premises - input services - Held that: - the appellant cannot provide its output services without having electricity connection. Accordingly, the said service received is an essential input service as defined under Rule 2(l) of CCR, 2004 - credit allowed. CENVAT credit - renovation of faculty at Logix Techno Park Map - input services - Held that: - there is insufficient evidence regarding this issue on record - matter remanded to the Adjudicating Authority/Commissioner with direction for deciding this issue afresh, after providing opportunity of hearing to the appellant - matter on remand. CENVAT credit - Opening balance of Cenvat Credit as on 1 October, 2007, appearing in the ST-3 return for the period October, 2007 to March, 2008 - denial on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... providing various services under the classification Business Auxiliary Service, Maintenance or Repairing Services, Business Support Services, Convention Service, Health Club and Fitness Centre. The appellant was also taking Cenvat Credit of authorized inputs services received in discharging and/or providing the taxable output services. An audit was conducted by the Revenue and certain objections were raised for the period 2008-09 and 2009-10, issued by Superintendent vide Audit Note dated 24 March, 2011. The appellant replied all the audit objections taking a categorical stand that there is no liability to Service Tax under each of the objections. Subsequently show cause notice dated 3rd October, 2012 was issued proposing disallowance of Cenvat Credit amounting to ₹ 1,65,65,202/- and further demand of Service Tax on Reverse Charge Basis on alleged advertisement service received from outside India being demand of ₹ 9,37,392/-. The appellant contested the show cause notice by filing their reply taking the stand that no tax as proposed is payable and/or credit taken disallowable. The SCN was adjudicated vide impugned order dated 31.10.2013 and the proposed demands were con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also been so clarified by the CBEC vide circular issued in the year 1996 and also in a catena of decision by this Tribunal. 3.3. So far the Horticulture services received, it is alleged in the show cause notice that the appellant have taken inadmissible Service Tax Credit of ₹ 3,70,540/- on the service provided by Mali (Horticulture Service) which is not input service as per the Rule 2(l) of CCR, 2004. The learned Counsel have urged that the appellant have constructed commercial/business centre and such premises need to have apleasing and aesthetic look and so as to attract the persons i.e., service receivers, being their output service and also for increasing the ambience for their premises at large, so as to make it profitable. Accordingly, such services in the nature of Horticulture or gardening services is an essential input services and accordingly, Cenvat Credit taken is allowable. The learned AR had relied on the findings of the learned Commissioner. Having considered the rival contentions, we hold that garden services or Horticulture availed by appellant is an essential input service, more so for renting. Maintaining the commercial centre is essential so as to at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngly, the Service Tax paid for laying of the cable is fully available input expenditure as defined in Rule 2(l) of CCR, 2004. The learned AR for Revenue has relied on the findings of the impugned order, wherein the learned Commissioner have held that the services provided by the appellant have no relation with service of laying of high tension cable. Further, the service is not being used by the appellant for providing the output service and they do not fulfill the conditions of Rule 2(l)(1)(i) and hence the said credit is not allowable. Having considered the rival contentions we hold that the appellant cannot provide its output services without having electricity connection. Accordingly, we hold that the said service received is an essential input service as defined under Rule 2(l) of CCR, 2004. Accordingly, appellant is entitled for credit of ₹ 7,40,238/-. 3.6. So far the input service for renovation of faculty at Logix Techno Park Map ₹ 1,22,364/- is concerned it is alleged in the SCN that as per the invoice dated 07 May, 2008 No. VCS/08-09-06 dated 05 May, 2008 of V.C. Solutions Pvt. Ltd. for renovation of faculty at Logix Techno Park Map at Sector 127, Noida the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also produced a copy of import certificate dated 21 January, 2009, issued by Software Technology Parks of India, Ministry of Communication Information Technology, Department of Information Technology, Government of India, stating that the appellant Noida Cyber Park Pvt. Ltd. have been approved by the Government of India vide approval dated 28 September, 2007 as infrastructure service provider. The proposed items of import are relevant and to be installed and used by the unit being Software Technology Parks unit and are covered by Custom Notification No. 15/3/1993 CUS dated 13.08.1993. The said copy have been authorized by the Ministerial Authority through the Performa Invoice No. 044 dated 18 December, 2008 stating price in US $ 1,88,814/-. Thereafter the said generator have been imported and supplied to the appellant by Sterling Generators Pvt. Ltd. vide Invoice No. 0086 dated 17 December, 2009 for INR ₹ 89,50,000/-. The learned Counsel further explains that due to some accounting error, the amount of the generator purchase was debited in the advertisement head and it is further pointed out with reference to the audit report, only amount of ₹ 1,60,895/- was spent in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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