The High Court of Karnataka, Bengaluru disposed of this CEA filed by the Revenue against a CESTAT order allowing cenvat credit on input services for construction meant for commercial rent. The Court disposed of the matter by dismissing the appeal.
Appeal dismissed; question of law answered in favour of the assessee.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
C.E.A No.3/2020
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF OCTOBER, 2022 PRESENT
THE HON’BLE MR. JUSTICE P.S. DINESH KUMAR
AND
THE HON’BLE MR. JUSTICE UMESH M. ADIGA C.E.A No.3 OF 2020
BETWEEN :
COMMISSIONER OF SERVICE TAX BANGALAORE SERVICE TAX COMMISSIONERATE 16/1, 5TH FLOOR S.P COMPLEX, LALBAGH ROAD BENGALURU-560 027 KARNATAKA
PRESENT OFFICE
PRINCIPAL COMMISSIONER OF CENTRAL TAX BANGALORE NORTH NO.59, HMT BHAWAN GROUND FLOOR, BELLARY ROAD BANGALORE-560 032 KARNATAKA ... APPELLANT (BY SMT. K.R. VANITHA, ADVOCATE)
AND :
M/S. CITY VIEW BANGALORE PROPERTIES PVT. LTD. (NOW KNOWN AS EMBASSY ONE DEVELOPERS PVT. LTD.) LEVEL 04, NO.9 BELAIR DRIVE BELLARY ROAD
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... RESPONDENT
BENGALURU-560 032 KARNATAKA
(BY SHRI. N. ANAND, ADVOCATE FOR SHRI. B.G. CHIDANANDA URS, ADVOCATE)
THIS CEA IS FILED UNDER SEC.35G OF THE CENTRAL EXCISE ACT, 1944, ARISING OUT OF ORDER DATED 25.02.2020 PASSED IN FINAL ORDER NO.20215/2020, PRAYING TO SET ASIDE THE CESTAT FINAL ORDER NO.20215/2020 DATED: 25.02.2020 VIDE ANNEXURE-A, AND DECIDE THE QUESTION OF LAW FRAMED IN THE ABOVE APPEAL BY ALLOWING THE APPEAL IN THE INTEREST OF JUSTICE AND EQUITY AND ETC.
THIS CEA, HAVING BEEN HEARD AND RESERVED FOR JUDGMENT ON 26.08.2022, COMING ON FOR PRONOUNCEMENT OF JUDGMENT, THIS DAY, P.S.DINESH KUMAR J. , PRONOUNCED THE FOLLOWING:-
JUDGMENT
This appeal by the Revenue challenging the
order dated February 25, 2020 in Appeal No. 627/2012 passed by CESTAT1 , Bengaluru has been admitted to consider the following question of law:
"Whether the CESTAT was right in holding that the assessee is entitled for cenvat credit on input services used for constructions of commercial complex which is meant for commercial activity and earning rent, which is taxable under the provisions of Finance Act, 1994".
1 Customs, Excise & Service Tax Appellate Tribunal, Bangalore
C.E.A No.3/2020
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Advocate for the Revenue and Shri. N. Anand, learned Advocate for the assessee.
C.E.A No.3/2020
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proposed demand vide Order-in-Original dated January 23, 2012 and also imposed interest and penalty. The CESTAT has allowed the appeal by following its earlier decision in Millennia Realtors Pvt. Ltd Vs. CCE2 . Hence, this appeal.
"Further, in a similar case in respect of M/s Golf Links, Bangalore, the department has filed an appeal against CESTAT Final Order No.21081/2018 dated 02.08.2018 and the same is pending before the Hon'ble High Court of Karnataka (CEA 38/2019). In view of the above, the F O No.20215/2020 dated:25.02.2020 is not legal and proper."
(Emphasis Supplied)
2 Final Order NO.20191-20192/2020 dated 17.02.2020
C.E.A No.3/2020
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Revenue, this appeal is similar to CEA 38/2019 and
the same is not disputed.
fail. Hence, the following:
Order
(a) Appeal is dismissed .
(b) The question of law is answered in favour
of the assessee and against the Revenue.
No costs.
Sd/JUDGE
Sd/JUDGE
SPS
1 issue framed by the court
Whether the CESTAT was right in holding that the assessee is entitled for cenvat credit on input services used for constructions of commercial complex which is meant for commercial activity and earnin
Colour shows how this judgement treated each authority
Millennia Realtors Pvt. Ltd Vs. CCEReferred¶32
Millennia Realtors Pvt. Ltd Vs. CCE
1 provisions across 1 enactments
Commissioner of Service tax BangalaoRE
M/S. City View Bangalore Properties Pvt. Ltd.
P.S. Dinesh Kumar
Umesh M. Adiga
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court