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TMI Blog2018 (3) TMI 1286X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of immovable property - credit allowed. Demand of service tax - notional interest - Held that: - the issue is squarely covered by the judgment of the Tribunal in the case of Magarpatta Township Developers & Construction Co. Ltd. [2014 (9) TMI 461 - CESTAT MUMBAI], wherein the Tribunal has held that notional interest cannot be included in the value and will not be taxable under the category of renting of immovable property services - no service tax is chargeable on notional interest. Appeal allowed - decided in favor of appellant. - Appeal No. ST/85074/15-Mum - ORDER NO. A/85435/2018 - Dated:- 27-2-2018 - Mr. S.S. Garg, Member (Judicial) And Mr. C.J. Mathew, Member (Technical) Shri Mehul Jiwani, C.A., for appellant S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant also availed cenvat credit of various input services used during the period of modernization of premises. Appellant is collecting service tax on the said activity and paying the same under the category of renting of immovable property service. Further, the appellant under the lease and licence agreement has also received an interest-free security deposit of ₹ 3,29,80,000/-. The appellant s head office is not registered under the Service Tax, but the payments towards all invoices are done from the head office. However, the services were received at the premises from where output services were being provided. After the scrutiny of ST-3 returns filed by the appellant from time to time, the department entertained the view that the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sr.No. Nature Period Amount (Rs.) 1. Denial of cenvat credit October 2007 to April 2012 77,03,338/- 2. Service tax on notional interest July 2010 to July 2012 11,26,086/- Total 88,29,424/- 3. Heard both the parties and perused the records. 4. Learned consultant for the appellant submitted that the impugned order is not sustainable in law as the same is contrary to the provisions of the statute as well as contrary to the binding judic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er submission that the Tribunal in the case of City Centre Mall Nashik Pvt. Ltd. has allowed the cenvat credit of input service used for construction of immovable property that is used for renting after considering both the aforesaid judgment cited by the adjudicating authority as well as the circular. He also submitted that it has been consistently held by various courts that cenvat credit of input service used for construction of immovable property which is ultimately used for renting or for providing storage and warehousing services etc. will be eligible. For this submission, he relied upon the following decisions:- i) Oberoi Mall Ltd. 2017 (47) STR 292 (Tri.-Mumbai); ii) Navaratna SG Highway Prop (P) Ltd. 2012 (28) STR 166 (Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4/CSTB/C-I dated 14.10.2014 wherein the Tribunal has held that notional interest cannot be included in the value and will not be taxable under the category of renting of immovable property service. He also submitted that the department has accepted this judgment on merits and decided not to pursue the manner in the higher court. 5. On the other hand, learned AR reiterated the findings of the impugned order. 6. After considering the submissions of both the parties and perusal of the material on record and the various judgments relied upon by the appellant, we find that the Revenue has wrongly denied the cenvat credit on various input services which have been used for construction of immovable property which is ultimately rented out. Fu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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