2019 (1) TMI 771 – CESTAT NEW DELHI – TMI – CENVAT Credit – input services – Maintenance Charges – it is alleged that the said maintenance service is not used by the appellant in or in relation to manufacture of final products or clearance of final products up to place of removal – Held that:- It is the admitted fact that the manufacturing activity of appellant is carried from the premises as are taken on rent. It is apparent from record that the impugned maintenance charges are the part of lease/ rent charges. M/s AKVN i.e. the leaser is also charging the service charges in their lease bills raised for lease amount and maintenance amount. Though the maintenance is for roads, street lights, drainage, etc. i.e. for facilities being provided beyond the manufacturing/ factory premises of appellant but the simultaneous fact is that such services are charged on the basis of per square meter of business premises occupied by the appellant – The lease/ rent charge are the eligible inputs.
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service tax ₹ 5,84,363/- paid on Maintenance Charges recovered by M/s M.P. Audyogic Kendra Vikas Nigam (AKVN) Indore Ltd. who has leased the plot to appellant. The said maintenance service is not used by the appellant in or in relation to manufacture of final products or clearance of final products up to place of removal. Hence, vide SCN dated 07.06.2017, department alleged that cenvat credit availed by the appellant on said service appeared as not admissible. Accordingly, appellant was asked to pay/ reverse the said wrongly availed credit of ₹ 5,84,363/- (Rs.2,11,201/- + ₹ 3,73,162/-) alongwith interest and applicable penalty. The said demand has been confirmed vide Order-in-Original dated 25.04.2018. Commissioner(Appeals) also vide Order-in-Appeal dated 27.07.2018 holding that maintenance charge is not specifically mentioned in the main parts as well as the inclusive part of the definition of Input Service. The appellant is therefore before this Tribunal. 2. It is s
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ri.-Mum.). 3. From the argument of both the parties, the narrow compass of adjudication appears to be whether Maintenance Charges for common area of a business premises taken on rent is eligible input service? 4. As per definition of Input Service, applicable to the impugned period are input service used by a manufacturer, those which are used directly or indirectly in or in relation to the manufacture of final products and clearance of final products upto the place of removal and also includes services which are used in relation to 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, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation o
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