Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Maharashtra Cricket Association Versus Commissioner of Central Excise, Pune-III

2015 (11) TMI 910 - CESTAT MUMBAI

Availment of CENVAT Credit - whether the services such as Architect Services, Consulting Engineers Services, Management Consultancy Services etc. used for construction of sports stadium are admissible input services for taking Cenvat Credit as against the output service of the appellant i.e. renting of the said stadium and other services on which services, service tax was discharged - Held that:- Input service specifically includes amongst others services used in relation to setting up, premises .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

service i.e. the appellant.

Board Circular appears to have travelled absolutely contrary to the clear and plain language of the definition of the input service. It is very pertinent that legislators knowing fully that there is no tax or excise duty on the constructing premises of the output service provider, included services used for setting up of the premises of provider of output services, for the simple reason that if the premises are used for providing the output service, the cre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Ms Aparna Hirandagi, Adv For the Respondent : Shri A K Goswami, AC, (AR) ORDER Per Ramesh Nair This appeal is directed against Order-in-Original No. 25/P-III/ST/COMMR/2011-12 dtd. 30/11/2011 passed by the Commissioner of Central Excise, Pune-III, wherein the Ld. Commissioner confirmed the demand for ₹ 2,32,27,682/- under Sec. 73 of the Finance Act and the same amount already paid by the appellant was appropriated against the said liability. Interest under Sec. 75 was also demanded and the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd for the said purpose, they had received architect's services and design services from certain consultants, who did not have any office or fixed established in India; that, as such M/s. Maharashtra Cricket Association had paid service tax on the services received by them from persons located outside India in terms of Sec. 66A of Finance Act; after paying the service tax on reverse charge basis M/s. M.C.A. had taken Cenvat Credit on the amount of such service tax paid by them. A show cause .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ty Services' and therefore the amount of service tax paid on architect's services and design services received by the appellant which they had used for constructing the said stadium, was inadmissible to appellant and thus liable to be recovered. 3. In view of this contention, the show cause notice proposed the demand of Cenvat Credit amount of ₹ 2,32,27,682/- in terms of Rule 14 of Cenvat Credit Rules, 2004 read with Sec. 73 & Sec. 75 of the said Act and also proposed appropria .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that the show cause notice as well as confirmation of the demand was made only on the basis of Board Circular No. 98/01/2008-ST dated 04.01.2008. She submits that the said Board Circular is completely contrary to the definition of 'Input Services' provided under Rule 2(l) of Cenvat Credit Rules, 2004. She further submits that period involved in the present case is 2008-09. As per the definition of input service, prevailing at the relevant time as provided under Rule 2(l) of Cenvat Credit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

5. In view of this undisputed fact, the services of Architect, Consulting Engineering, Management Consultant etc. are the 'input services' used for setting up the stadium and the output services of the appellant is 'Renting the Immovable Property' on which service tax was discharged. The CBEC Circular No. 98/01/2008-ST dated 04.01.2008, which is the sole basis for denied of Cenvat Credit is absolutely contrary to the unambiguous definition of 'input service' which include .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

am-II - 2010 (255) E.L.T. 91 (Tri. - Bang.) 5. C.C.E., Visakhapattnam-II V/s Sai Samhita Storages Pvt. Ltd. - 2011 (270) E.L.T. 33 (A.P.) 6. Shri A.K. Goswami, Ld. Commissioner (AR) appearing on behalf of the Revenue reiterates the impugned order. He submits that from the Board Circular No. 98/01/2008-ST dated 04.01.2008, it is very clear that commercial or industrial construction service or works contract service is an input service for the output namely immovable property. Immovable property n .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

have carefully considered the submissions made by both the sides. 8. The issue involved is whether the services such as Architect Services, Consulting Engineers Services, Management Consultancy Services etc. used for construction of sports stadium are admissible input services for taking Cenvat Credit as against the output service of the appellant i.e. renting of the said stadium and other services on which services, service tax was discharged. Whether the service is input service or otherwise, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rance of final products from the place of removal]1n, and includes services used in relation to setting up, modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer net .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n the analysis of the definition, it becomes clear that the 'input service' is not limited to the services for providing output service, but it also includes the service for setting up the premises of provider of output service. In the present case the input services are Architect Services, Consulting Engineers Services, Management Consultancy Services etc. used for setting up the premises i.e. stadium of provider of output service i.e. the appellant. The output service is renting of sta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

es of the output service provider, included services used for setting up of the premises of provider of output services, for the simple reason that if the premises are used for providing the output service, the credit of input services used for setting up the premises of service provider must be allowed. 9. In view of this clear and unambiguous definition of input service, it is apparent that the Circular is contrary to the definition of input service which is not tenable. We found that the judg .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ow:- "3.2 The definition of 'inputs' is limited to the definition of 'input services' as can be seen from the definition given above. Credit of duty paid on inputs is available when the inputs are used for providing an 'output service'. Therefore, there is a need to say that the inputs have been used for providing an 'output service'. In the case of 'input service', the definition includes input services used by a provider of taxable service for provi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version