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TMI Blog2024 (1) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment group and being a specialized agency of United Nations is exempted from Service Tax as per the Notification No. 16/2022-ST. It was asserted that IFC enjoys immunity from taxation as per Section 9 of the International Finance Corporation (Status, Immunity and Privileges) Act, 1958 enacted under the special power provided by Article 253 of the Constitution of India. 2.2 He also pointed out that the powers under Article 253 have an overriding effect over the power available to the parliament under Article 256 (which grants the power to levy Service Tax). The appellant has relied upon the decision In the case of Coastal Gujarat Pvt. Ltd. 2012 (12) STR 377. 3. Learned AR relied in the impugned order it is notice that the impugned order, it has been stated that the explanation to the notification clearly prescribe that "International Organizations" being international organizations declared by the Central Government in pursuance of Section 3 of the United Nations (privileges and Immunity) Act, 1947 (46 of 1957) to be state provision of the schedule to the of the said Act apply. 3.1 It has been argued by Revenue that the IFC doesn't figure in the names of 13 entities notified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so to do, hereby exempts all the taxable services specified in section 65 of the said Act provided by any person, to the United Nations or an International Organisation, from whole of the service tax leviable under section 66 of the said Act. Explanation. - For the purposes of this notification, International Organization means an international organisation declared by the Central Government in pursuance of Section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), to which the provisions of the Schedule to the said Act apply." From the reading of the above notification and explanation thereof, it is seen that the definition of international organization as provided therein all the entities of United Nations are covered in the exemption. Therefore, if any entity falls under the umbrella of United Nation, all those entities are covered under the explanation in the exemption notification and apart from those entities, if there are other entities which may or may not part of United Nation, but listed in schedule of Section 3 of the United Nation (Privileges and Immunities) Act, 1947, those entities will be covered under 'International organization ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f share of common expenses. It was pointed out that the appellant are engaged in the business of practicing Charted Accounted and providing this Charted Accounted Service and Management And Business Consulting Service. They obtained the registration in the department. It was noticed by revenue that the M/s Deloitte Touche Tohmatsu India PVT LTD. (DTTIPL) and M/s Deloitte Haskins & Sells, Mumbai (DHS) have raised invoices /debit notes for sharing common expenses. The appellant have taken Cenvat credit on invoices issued by DTTIPL to DHS towards reimbursement of common cost incurred by DTTIPL under the head "reimbursement of your share of common cost incurred on your behalf." 5.1 It has been argued by revenue that DTTIPL is neither registered for providing the service nor provided any taxable service in the Finance Act. The appellant have submitted that sharing of common cost is a nature of input service only which are essential for provision of output service. The appellant has stated that the major portion of allocation of common cost pertain to Rent of immovable property, Employee sharing, Telephone, Repairs & Maintenance, Printing and Copying, Advertisement and Publicity Etc. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is not mere sharing of cost. 6. The next issue pertains to availment of Cenvat credit on renting of immovable property service in respect of the invoices of M/s Sabien Trusts for office No. 202, Heritage, Ashram Road, Ahmedabad, and for rent invoices of Mr. Raj Bhikhubhai Shah for office No.602, Heritage, Ashram Road, Ahmedabad. In case of office No. 202 the credit has been denied on the ground that the said offices not registered with the Service Tax department. And for the reason that in addition to the staff of the appellant, the staff of M/s C C Chokshi was also using the said office space. In respect of office No. 602, it was alleged that the said premises was not registered with the Service Tax department and it was being used by M/s. DTTIPL and not by the appellant. 6.1 It was also argued that the said premises were included in the Centralise registration of the appellant only with effect from 20.06.2013. The appellant have claimed that the premises at office No. 202 were not being used by the M/s C C Chokshi and company. This averment of the appellant has not been countered in the impugned order. The impugned order denies the credit simply on the ground that the invoice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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