My client has paid for the brokerage including service tax for renting his immovable property. He has also paid service tax on the processing charges of loan obtained in respect of the propery rented out. Can he claim cenvet credit for the above ? Service Tax department has not allowed the credit for the same citing the circular No 98/1/2008 - ST dated 4-1-2008 which I belive says that Input credit will not be available ONLY in respect of Commercial or Industrial Construction Services or Work Contract services used for construction of an immovable property which is given on rent. This applies only in respect of these two services only but when there is a direct nexus between earning of rent with the input services availed , cenvat credit cannot be denied.
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