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2017 (7) TMI 724 - AT - Service TaxRenting of immovable property service - case of the department is that the appellant is liable to pay service tax on the rent of leased out premises of the factory under renting of immovable property service and the appellant is not entitled for the exemption N/N. 06/2005-ST dt. 1.3.2005 - Held that: - In the present case, the premises which was rented out the appellant is provider of service only to that premises. In that premises no capital goods was received and used on which the credit was taken. Therefore the condition (iii) of para 2 of the notification does not get violated. The availment of cenvat credit in respect of input, input service or capital goods by the appellant only in relation to the manufacturing activity will not debar them from availing the exemption notification No. 06/2005-ST for their service of renting of immoveable property. The excisable activity in the manufacturing unit and the service related to renting of immoveable property are two distinct activities and therefore the availment of cenvat credit in relation to manufacturing activity cannot be applied to their service of renting of immoveable property. The appellant is not liable to pay any service tax - appeal allowed - decided in favor of appellant.
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