9911796707
TMI Blog2023 (10) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... EXCISE, CUSTOMS SERVICE TAX, COCHIN [ 2023 (9) TMI 769 - CESTAT BANGALORE] , it was held that various input services used in providing Rental of Immovable Property service are admissible to CENVAT credit. Following the aforesaid decision of this Tribunal, it is opined that CENVAT Credit availed on banking and financial services used in providing Renting of Immovable Property service is admissible. Demand of differential interest for the respective periods - HELD THAT:- The department has specifically alleged in the notice that the appellant had collected rent on monthly basis along with service tax from the tenants; however, they have not deposited service tax so collected as on due date - On being inquired during the course of hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2016 to March, 2017. Also, they had availed inadmissible CENVAT Credit of Rs. 13,77,515/-. Consequently, a show cause notice was issued to the appellant on 02.12.2019 for recovery of aforesaid amounts with interest and proposal for imposition of penalty. On adjudication, the demand was confirmed with interest on the irregular availment of CENVAT Credit, equivalent penalty and recovery of the differential interest. Aggrieved by the said order, the appellant filed an appeal before the ld. Commissioner (Appeals) who, in turn, rejected their appeal. Hence, the present appeal. 3.1 At the outset, the ld. Advocate for the appellant submits that the CENVAT Credit of Rs. 13,77,515/- was availed by them on receiving banking and financial service, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 3.2 Further, she has submitted that on the differential amount of interest demanded on service tax paid by the appellant, the interest was calculated by the department applying the rate of interest as 24% whereas they have discharged interest calculating @15%. She submits that even though, the department has alleged that the appellant had collected service tax from the customers but paid the same belatedly to the department, but no evidence has been placed on record. Therefore, the demand of interest @24% cannot be sustained. She also submits that since the appellant has rightly availed CENVAT Credit on banking and financial services used for providing the output services namely Renting of Immovable Property service, therefore, imposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he light of Board s Circular No. 98/1/2008-ST dated 04.01.2008 in the case of Golflinks Software Park Pvt Ltd (supra) and rejecting the said view observed that cenvat credit is admissible on the service tax paid on various used in the maintenance of the immovable property; this decision of the Tribunal later on appeal by the Tribunal has been rejected by the Hon ble High Karnataka High Court endorsing the view of the Tribunal. Following the said judgement in Oberon Edifices Estates Pvt Ltd s case (supra), it was held that various input services used in providing Rental of Immovable Property service are admissible to CENVAT credit. Following the aforesaid decisions of this Tribunal, I am of the opinion that CENVAT Credit availed on bankin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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