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2013 (10) TMI 912 - AT - Service TaxDenial of CENVAT Credit - input services for the purpose of renting of immovable property - input services for setting up of factory premises - Management, Maintenance or Repair Service - stay - Held that:- Commissioner observed that after construction of the building, it became a source of collection of rent which became taxable service at a later period. In our considered view, the definition of ‘input service’ under Rule 2(l) of the CENVAT Credit Rules, 2004 provides ‘any service used in relation to setting up, modernization, renovation or repairs of factory, premises of provider of output service’. There is no dispute that input service was utilized for setting up the building and after completion of the building the applicant used for renting of immovable property which is an output service. So the denial of credit on input service utilized on renting of immovable property, prima facie is not justified Regarding the denial of credit on input service used in ‘Management, Maintenance or Repair Service’, on perusal of the list of various input services, we find that some services such as Architect Service, Interior decorator, Insurance Auxiliary Service, Erection and Commissioning or Installation, Security Agency Services etc. cannot be utilized for the output service namely ‘Management, Maintenance or Repair Service’ - prima facie credit is not allowable. Demand of service tax - Input service on electricity charges - Held that:- electricity is goods as held by the Courts in several cases. DG sets is also used for generating electricity - applicant has failed to make out a prima facie case for waiver of predeposit of entire amount of tax along with interest and penalty. - Stay granted partly.
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