2018 (10) TMI 163 – CESTAT MUMBAI – TMI – Cash refund of accumulated CENVAT Credit – input services – renting of immovable property service – refund rejected on the ground that the two invoices on which Service Tax was paid claimed to have been issued in the same month – Held that:- The two invoices were raised for the rent amount of ₹ 3,93,488/- in the name of each of the co-owners against which Service Tax was paid – Also, on going through the TDS certificate, it is clear that separate invoices are raised by each of the co-owners and Service Tax accordingly paid by each of the co-owner.
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Therefore, there is no dispute about the admissibility of the CENVAT Credit on the Service Tax paid by the licensor to the extent of the own
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cumulated CENVAT Credit under Rule 5 of the CENVAT Credit Rules, 2004. The present issue relates to denial of CENVAT Credit on Service Tax paid on part of the input services namely, renting of immovable property. The appellant has taken an office on rent from one Mrs. Payal Jain and Shri Manish Mehta with a monthly rent of ₹ 7,86,975/- for the disputed period. The said rent was distributed between the two co-owners namely, Mrs. Payal Jain and Shri Manish Mehta equally in the ratio of 50:50. Invoices are raised separately on each of the partner equally to the amount received by them. Alleging that since two invoices are raised during the same month, 50% of the rent amount ₹ 3,93,488/ was held to be inadmissible as credit. Consequ
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learned Commissioner (Appeals). 5. Heard both sides and perused the records. 6. The short issue involved in the present appeal for determination is whether the appellants are entitled to claim cash refund of accumulated CENVAT Credit in relation to renting of immovable property. The sole ground on which refund was rejected is that two invoices on which Service Tax was paid claimed to have been issued in the same month. On going through the invoices, I find that two invoices were raised for the rent amount of ₹ 3,93,488/- in the name of each of the co-owners against which Service Tax was paid. Also, on going through the TDS certificate, it is clear that separate invoices are raised by each of the co-owners and Service Tax accordingly
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