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2020 (4) TMI 383 - AT - Service TaxCENVAT Credit - imported capital goods which were used in construction of the mall - The case of the department is that since the appellant are providing renting of immovable property services, all the capital goods on which credit is taken was used for construction of mall and not for providing the services of renting of immovable property - litter bin, capital goods or not - HELD THAT:- The identical issue has been decided in respect of capital goods used for construction of building which is rented out in the case of City Centre Mall Nashik Pvt. Ltd. vs Commissioner of Central Excise & Service Tax, Nashik [2017 (11) TMI 301 - CESTAT MUMBAI] where it was held that merely by installation of duty paid capital goods, it can not be said that it is immovable goods all the capital goods were used in the shopping mall to facilitate the shop owners for operation of the mall, who have been given the shops on rent by the appellant. Therefore all these capital goods were directly used by the appellant for providing output service i.e. renting of immovable property service. Accordingly the cenvat credit on the capital goods is admissible. The appellant is entitled for Cenvat Credit on capital goods used in construction of mall which was given on rent by providing renting of immovable property service. Litter bin - HELD THAT:- The item does not fall under capital goods. However, the same was used as input. Accordingly, the credit under the head input is allowed - Taking credit considering the litter bins as capital goods is a procedural lapse and on that account, credit cannot be denied. Appeal allowed - decided in favor of appellant.
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