TMI Blog2019 (10) TMI 581X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rule 68(2) that the person providing GTA service is neither the provider of the output service nor the manufacturer of final product as required under Cenvat Credit Rules, 2004. It has further been clarified that the recipient of the taxable services, even if, they discharge their service tax liability under Rule 68(2) are not entitled to avail the credit of service tax paid on taxable services received by the them as per Cenvat Credit Rules, 2004. From the above clarification there remain no doubt that credit on input services in respect of GTA services are not admissible even for the period prior to 19.04.2006. So no credit of input service is admissible for payment of service tax in respect of output service of GTA provided by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he audit of the financial records, it has been observed by the department that the assessee has availed Cenvat credit on input services during the period January 2005 to March 2008 in respect of various services, which do not qualify to be as input services for Goods Transport Agency (GTA) service, Maintenance Repair of Immovable Property service and Renting of Immovable Property service. The department on scrutiny of their ST-3 returns and Cenvat credit documents for the above period i.e. from January 2005 to March 2008 has observed that the assessee has availed Service Tax credit of ₹ 1,23,92,818/- on the basis of invoices relating to the following different categories of services :- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Pvt Ltd, A-45, Industrial Area, Phase VIII-B, Mohali. It has been pointed out that since the bill for the services provided by the assessee has not raised on 01.06.2005 where the service became taxable only from 16.06.2005 and therefore, the service tax should have been paid from the relevant period on prorata basis. A show cause notice dt. 24.09.2009 came to be issued to the assessee demanding a Cenvat credit reversal of ₹ 1,02,73,109/- under Rule 14 of Cenvat Credit Rules, 2004 read with Section 73(1) of Finance Act, 1994 by invoking the extended period of limitation. The department has also demanded appropriation of the amount of ₹ 88,70,434/- deposited vide Challan Nos. 24 dated 26.03.2009 and 36 dated 29.07.2009. Similarl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e at A-40A are exempt as per Notification No. 4/2004-ST dt. 31.03.2004, however, the assessee is still entitled to Cenvat credit of the services used for construction of the building at A-40A by virtue of Rule 6(6A) inserted vide Finance Act, 2012 made effective from 10.02.2006. The relevant portion is extracted as under: (6A) The provisions of sub-rules (1), (2) and (4) shall not be applicable in case of the taxable services are provided, without payment of service tax, to a unit in a Special Economic Zone or to a Developer of a Special Economic Zone for their authorized operations. The ld. advocate relied upon the following case laws in support of his contention:- (i) CST vs. Fedco Paints and C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rified from the provision of Rule 68(2) that the person providing GTA service is neither the provider of the output service nor the manufacturer of final product as required under Cenvat Credit Rules, 2004. It has further been clarified that the recipient of the taxable services, even if, they discharge their service tax liability under Rule 68(2) are not entitled to avail the credit of service tax paid on taxable services received by the them as per Cenvat Credit Rules, 2004. From the above clarification there remain no doubt that credit on input services in respect of GTA services are not admissible even for the period prior to 19.04.2006. So no credit of input service is admissible for payment of service tax in respect of output service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e payable for the service of Maintenance Repair of Immovable Property. The service of Maintenance Repair was meant for the building situated at plot no. A-45, Phase VII B, Mohali. It is a matter of record that the building situated at plot no. A-45, Phase VII B, Mohali has already been fully constructed and under occupation and given on rent to various entities before 16.06.2005. Once the building was ready on 16.06.2005, it is very difficult for us to believe that input services such like erection, installation, fabrication, architect etc have been have been used by the assessee after the building has been constructed. We also find that renting of immovable property service came into effect from 01.07.2007 and therefore, no credit is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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