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TMI Blog2019 (11) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... ed only on the ground that there is no scope in the CENVAT Credit Rules 2004 to partly allow and partly disallow credit on the same invoice - appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 31217 of 2018 - Final Order No: 31008/2019 - Dated:- 18-10-2019 - Hon'ble Mr. P. Venkata Subba Rao, Member (Technical) Mr V Ravindra Nath, Adv for the Assessee. Mr A.V.L.N. Chary, A.R. for the Respondent. ORDER PER:P.VENKATA SUBBA RAO The appellant is a holder of service tax registration for providing taxable services under the category of storage and warehousing services. They are availing the facility of CENVAT credit of duty pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2015 should not be disallowed and recovered from then under Rule 14 of CENVAT Credit Rules 2004 read with Proviso to Section 73(1) of the Finance Act 1994 and Section 75 of the Finance Act 1994. It was also proposed to recover interest on the aforesaid amount and impose penalties upon them under Rule 15 of CENVAT Credit Rules 2004 read with Section 78 and under Section 77(2) of the Finance Act 1994. After following due process, the authority allowed CENVAT credit only to the extent of 1/3rd of the amount on the ground that only 1/3rd of the portion of land was occupied by them and therefore found the input service for their output service. He disallowed ineligible CENVAT Credit amounting to ₹ 3,50,200/- and also charged interest and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hin the same premises. Hence only a proportionate amount of CENVAT Credit can be allowed. Allowing the appeal of the appellant, this Bench had observed that the lift maintenance and security services were hired by the appellant in the case and given the nature of these services others running their business from the same complex would have also benefitted from them just as one s porch light helps passersby but it does not dilute the utility of the services by the appellant or their nexus with the output service. Thus holding, the CENVAT Credit on the services was allowed. Learned counsel would argue that following the ratio of this judgement, they should also be allowed CENVAT Credit on the entire amount of service tax paid on renting of im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtially allow credit of CENVAT and partially disallow on the same inputs, h e submits that there is no specific provision and going by the general principles of fairness a proportionate amount of credit was allowed by the Principal bench of the Tribunal in the aforesaid case and the same ratio must be followed in the present case also. 5. I have considered the arguments on both sides and perused the records. It is not in dispute that the appellant has in this case rented the entire ground floor as can be seen from the rent agreement. Rent Agreement available in the paper book does not show that they have rented only one portion of the building. It is not in dispute that from the same ground floor for which the appellant is pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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