KIRLOSKAR SYSTEMS LTD. Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) CENVAT credit of Rs. 8,18,074/ - has been denied being the service tax paid on real estate agent's service for the period prior to June 2007 on the ground that during the relevant period renting of immovable property service was not in existence and therefore the appellant was not eligible for the credit. The service tax of Rs. 4,92,375/ - has been demanded on the ground that the assessee should have paid service tax on movable fixtures/movable assets which were transferred to the tenants for using in the facility. After hearing both sides, we find that the appeal itself can be decided. Accordingly, the requirement of pre -deposit is waived and appeal is taken up for final decision.

(2.) AS regards the denial of CENVAT credit, it is the claim of the appellant that they were paying service tax on maintenance charges received from their tenants prior to the renting of immovable property service came into existence and therefore credit was admissible in respect of real estate agent's services also. It was also mentioned that real estate agent's service is one of the services covered under Rule 6(5) of CENVAT Credit Rules 2004. We find that this argument is acceptable and appropriate.