CENVAT credit on service tax charged by estate agent, Service Tax

[Yatin Bhopi]

We are manufacturer of organic chemicals. We are in the process of sale of our commercial property which was previously used as office premises, but this office is not in use since last 4-5 years. For the purpose of selling this property we have hired service of estate agent.  Now he has arranged for the sale of this property.

My query is:  Is CENVAT credit admissible on service tax charged by estate agent?

Posts / Replies

[Rajesh Nathoo]

Dear  Mr. Bhopi,

  Legislature is already reuctant to allow credit on office related expenditures to manufacturers .

In ur case , credit related to sale of office premises   by no strech of imagination has nexus with manufacturing activities .

So, I don,t think credit is admissible .