December 2015
Architect Services, Consulting Engineers Services, Management Consultancy Services etc. used for construction are eligible input services against the output service of Renting of Immovable Property.
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44. [2015-TIOL-2418-CESTAT-MUM] Maharashtra Cricket Association vs. Commissioner of Central Excise, Pune-III.
Architect Services, Consulting Engineers Services, Management Consultancy Services etc. used for construction are eligible input services against the output service of Renting of Immovable Property.
Facts
The assessee, an association, constructed a stadium and availed the services of Architect, Consulting Engineering and Management Consultancy and availed CENVAT credit of the service tax paid thereon. The department contended that vide Circular No. 98/01/2008-ST, the credit of service tax paid on commercial or industrial construction or works contract service used for construction of immovable property is not eligible to a person providing renting of immovable property service and accordingly the input services availed being in relation to construction are inadmissible for credit.
Held
The Tribunal observed that the definition of input service provided under Rule 2(l) of the CENVAT credit Rules, 2004 specifically includes services “in relation to setting up, premises of provider of output service or an office relating to such premises”. Accordingly, the services used for setting up the stadium are eligible input services. The Tribunal also noted that the circular being contrary to the definition of input service is not tenable. Further, relying on the decision of Navratna S.G. Highway Prop. Pvt. Ltd vs. Commr. of ST, Ahmedabad-2011-TIOL-1703- CESTAT-AHM, the appeal was allowed.
