Cenvat Credit of Excise Duty paid on Stocks for payment of service tax on renting of Immovable properties

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A person owning a shoping mall and also running showroom of Readymade garments in the same shopping mall and also renting the other shops in the mall to MNC's whether eligible for:-

-- claiming excise duty paid by him on purchase of readymade garments as set off for payment of service tax on rent received by him on renting of Immovable properties i.e. shops of the shopping mall under Cenvat Credit Rules 2004

--Whether the Excise duty paid by him on the purchase of readymade garments as stocks are eligible for cenvat credit as Input under payment of Service Tax.

 

Replies (2)
Rule 3(1) of cenvet credit rules speaks as follows:: "(1) A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit (hereinafter referred to as the CENVAT credit)..................................." Since shopping mall owner is neither manufacturer or service provider the question of cenvat credit in his case does not arise
As the inputs are not used for providing output service of renting of property, duty paid on such inputs is not cenvatable.


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