GALAXY MERCANTILES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) ALL three stay petitions are being disposed of by a common order as the issue involved is identical. After hearing both sides, we find that the following demands stand confirmed against the appellant along with imposition of penalties: - -

(2.) THE appellants are owners of shopping malls which consists of various shops. As the said shops are being given on rent by them they are registered with the Service Tax department as the service provider falling under the category of "renting of immovable property services", along with 'maintenance and repair services' and 'sale of space or time for advertisement services.' The dispute in the present appeal relates to the Cenvat credit availed by the appellants and utilised for providing output services of 'renting of immovable property services'. The appellants have availed the credit of Service Tax paid in respect of various services such as security services, consultancy, housekeeping, repair, maintenance and Chartered Accountant, etc. as also Cenvat credit in respect of cement, glass and steel used for construction of building under the Works Contract Services. Revenue by entertaining a view that Cenvat credit availed on various input, like cement, glass, steel and iron used for construction of building and various input services are not eligible Cenvatable services, initiated proceedings against the appellants which resulted in passing of impugned order.

(3.) ON the other hand, the Revenue's contention is that such use of cement, glass and steel is for the purpose of construction of building. The said inputs can be used for providing the output services falling under the 'work contract services'. As such, it is not in accordance with the law to hold that the said raw materials have been used for providing output services of "renting of immovable property". Similarly, various inputs services utilised by the appellants on which the appellants have availed the credit cannot be held to be input services for providing said output services. The contention of the Revenue is that there has to be nexus between the inputs, input services and output services for availing credit. As such, submits the learned DR that the appellants be put to some terms of deposit.