Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 246 - AT - Central ExciseCENVAT Credit - renting of immovable property - substantial portion of the said premises is being used as a factory by the Appellant and only a small portion of the same is being used as depot - Held that:- It is not in dispute that out of the total leased area of 33,000 sq. ft., the appellant has used 30,990 sq. ft. (93.91%) for manufacturing activity and the remaining area of 2010 sq. ft. (6.09%) only was used for depot activity. To support their claim, the Appellant have also produced the certificate issued by M/s. Parag Mutha, Chartered Accountant before the Adjudicating Authority. It is not the case of Revenue at any point of time that the entire premises has been used for trading activity or for depot purpose only. The ratio of depot sale to manufacturing sale is applicable when the credit has been held to be inadmissible for the entire premise which was the case of the department in the show cause notice. Since the Appellant has availed a total amount of ₹ 10,38,070/- as input service tax credit for this renting of immovable property service, therefore 6.09% of the said amount i.e. ₹ 63,219/- is only ineligible for credit since that was used for trading activity and not for the manufacturing purpose - the matter needs correct quantification of demand to be recovered from the appellant. Appeal disposed off by way of remand.
|