TMI Blog2017 (3) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... off of value of the input service from the books of accounts, being bad debt cannot be sustained - credit allowed - appeal allowed - decided in favor of appellant. - Service Tax Appeal No.10383 of 2015-SM - A/10558/2017 - Dated:- 13-2-2017 - Dr. D.M. Misra, Member (Judicial) Shri Harish Bindumadhavan, Advocate, for the appellants Shri Sameer Chitkara, A.R. for the Respondent-Revenue ORDER Per Dr. D.M. Misra Heard both sides. 2. This appeal is filed by the appellant against the Order-in-Appeal No.AHM-SVTAX-000-APP-181-14-15 dated 29.12.2014 passed by the Commissioner (Appeals II), Central Excise, Ahmedabad. 3. Briefly stated the facts of the case are that the appellants are engaged in providing output services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made good by their client, cannot be denied to them taking recourse to Rule 3(5B) of the CENVAT Credit Rules, 2004. It is his contention that the said Rule is directed against the input and capital goods and not input service. In support of his contention, ld. Advocate refers to the decision of this Tribunal in the case of M/s JAKG Communications Pvt. Ltd. vs. C.C.E, Chennai III 2016 TIOL 1507 CESTAT MAD. 5. Ld. A.R. for Revenue reiterates the findings of the ld. Commissioner (Appeals). 6. The short point needs to be addressed is: whether the appellants are eligible to CENVAT credit of the service tax paid on the value of service, namely, out of pocket expenses shown in their bill along with professional fees, but not reimbu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. (supra) whereunder at Para 4 of the said judgment it is observed as follows: 4. When there is no mandate of the statute to direct reversal of the Cenvat Credit already availed in respect of the Output Service provided and the consideration thereof not realised for which such receivable amount is written off as bad debt, the appellant cannot be directed to reverse proportionate Cenvat Credit. Law is well settled that when tax paid has gone into the treasury, appellant is entitled to credit thereof unless and until the allegation of fraud comes out. That is not the case in the present appeal. Therefore, the proposition of the appellant holds good in law following the judgment of the apex court in the case of Collector of Central ..... X X X X Extracts X X X X X X X X Extracts X X X X
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