2018 (4) TMI 1043

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..... onal rooms and repairing of some hotel rooms - Rule 6(5) of CCR 2004 - Held that: - the overall hotel business is rendered within the common hotel building and the construction service received in respect of construction of any part of the hotel is a common input service which has nexus with overall hotel business - In appellant's own case, M/s. Lemon Tree Hotels Pvt. Ltd. Versus CST, Chennai [201 .....

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..... ubmits that they are engaged in providing of various services and paying service tax in respect of laundry and internet café which is part of the overall hotel business and the output service is provided as one of the hotel business which is run in the hotel building. Therefore, the construction service used for constructing rooms, hotel rooms and repairing thereof is an input service for p .....

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..... and, Shri M. Suresh, Learned Dye Commissioner (AR) appearing on behalf of Revenue reiterates the finding of the impugned order. He submits that the appellant is paying service tax only in respect of few services, namely, 'rent-a-cab service', 'internet café', 'convention service', 'mandap keeper service' ' outdoor catering service', 'health and fi .....

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..... , 'health and fitness service' and 'dry cleaning service'. 6. The only issue is that whether CENVAT credit in respect of construction service is available in terms of Rule 6(5) of CENVAT Credit Rules, 2004. The contention of Revenue is that the output service has no nexus with the construction service. Therefore, construction service was exclusively used for non-taxable service. H .....

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..... that building constructed for the hotel is used for renting of the services of the hotel and accordingly CENVAT credit is admissible under Rule 6(5). Considering the Division Bench order of this Tribunal passed vide final order No. 43404/2017 dated 28/11/2017 the impugned order is not sustainable and the same is set aside. 8. The appeal is allowed. (Pronounced in Court on 03/4/2018))
Case law .....

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