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TMI Blog2018 (2) TMI 1433X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of service tax. So also the credit availed on payment of service tax can be utilized for discharge of central excise duty. The Tribunal in the case of Nvaratna S.G. Highway Prop. Pvt Ltd. [2012 (7) TMI 316 - CESTAT, AHMEDABAD] held that without construction of mall / building the renting of immovable property services cannot be provided and therefore construction service is an eligible service for credit for providing output service of Renting of immovable property. The disallowance of input service credit is unjustified - appeal allowed - decided in favor of appellant. - Appeal No.E/789/2010 - Final Order No.40112/2018 - Dated:- 4-1-2018 - Ms. SulekhaBeevi C.S. Member ( Judicial ) And Shri Madhu Mohan Damodhar, Member ( Tec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to use the whole carpet area for their manufacturing activity and furnished the changed ground plan deleting 1968.10 sq mts, from their manufacturing premises. It was also intimated in the same letter that they intended to use the said space for the purpose of storing components and raw materials belonging to M/s Hanil Lear India (P) Ltd. They requested to make necessary changes in their registration certificate deleting the area of 1968.10 sq. Mts. The appellant entered into a lease agreement with M/s Hanil Lear whereby this space was rented to them, on monthly licence fee of ₹ 4,25,000 for 11 months. That appellants thus are provider of out put service, viz Renting of Immovable property which is leviable to service tax. The credit a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings in the impugned order. He submitted that the appellants availed cenvat credit for the entire area of the factory premises in March 2009. By this time, they had leased out a portion of the premises to M/s Hanil Lear. Therefore appellant was not using that portion for manufacture of finished products. The definition of input service states that manufacturer would be eligible for input service credit only if the services are used directly or indirectly in or in relation to the manufacture of finished products. He adverted to Circular No. 98.01.2008-ST-dt 04.01.2008 and submitted that Board has clarified that credit is not admissible on Construction service used for construction of building which is used for providing, output service of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal; 6. The first limb of the above definition makes it clear that in the case of service provider, the service tax paid would be eligible input service, if the service is used for providing output service. The appellants contend that they are both manufacturer and provider of output service. For the portion of the building used for manufacturing activity, appellants are eligible for credit of service tax paid on constru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed products or for payment of service tax. So also the credit availed on payment of service tax can be utilized for discharge of central excise duty. The discussion made by Trubunal in the case of Lakshmi Technology Engineering Indu Ltd (Supra) is note worthy in this regard and reproduced as under. The Tribunal in this case has also dealt with the Circular dt. 04.01.2008. 4. Learned SDR, reiterating the grounds of appeal, submits that in respect of renting of immovable property services, they could not use credit on capital goods, inputs and service tax which are not actually utilized in respect of such services of renting of immovable property. He also relies on the Circular of the Board No 98/1/2008-S.T., dated 4-1/2008 which clari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arly, a provider of taxable service is also entitled to take credit of specified excise duty, additional duty of customs and service tax in respect of input services and utilize the credit from all these sources for the purpose of paying service tax. The objection by the Department is that the respondent who is both a service provider and a manufacturer should maintain two separate accounts one in respect of credit attributable to inputs, capital goods and services meant for excisable goods and credit attributable to capital goods, inputs and services attributable to the service provided by them. Common CENVAT Credit Rules have been framed in terms of powers conferred by Section 37 of the Central Excise Act, 1944 and Section 94 of the Finan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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