Order date – 20 December 2022

Facts –

• The Appellant, M/s. Pidilite Industries Limited, filed a Service Tax refund of amount of input credit against renting of immovable property services, which was rejected on the ground that the appellant has failed to submit any concrete evidence to establish that invoices of the rental services against which they availed Cenvat Credit is the same for which they have entered into agreement with the service provider Mr. Vishal Garg. 

Issue –

• Whether the appellant can claim refund of service tax against renting of immovable property services?

Order –

• The Tribunal held that as per the agreement monthly rental charges will increase 5% every year after completion of 12 months from the commencement date. Thus there are no discrepancies in the monthly rental but the difference in amount is due to the annual increase in monthly rental from time to time.
• It was also held that when the premises were purchased by Mr. Vishal Garg, he was issued letter for extension of lease period and revision of rent and therefore, rejecting the claim on basis of non-registration of agreement is not justifiable.
• Hence the appellant is eligible for Cenvat Credit so far as the renting of immovable property service and appeal is allowed.