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2013 (11) TMI 866 - AT - Service TaxCENVAT Credit - Penalty u/s 78 - Held that:- Applicant had availed the CENVAT Credit of Rs.54.40 lakh on the invoices in the name of their Head Office, whereas the Head Office was not registered as an Input Service Distributor, as required under the relevant provisions of CENVAT Credit Rules, 2004. Regarding the amount of Rs.55,22,860/-, prima facie, we find that the said Service Tax demand is confirmed against the Applicant by including the re-imbursement expenditure in the gross taxable services received from their clients under Rule 5(1) of the Service Tax Valuation Rules, 2006. We find that the said Rule has been struck down by the Hon’ble High Court in the Inter-Continental case (supra). Accordingly, the Applicant could able to make out a case for total waiver of predeposit of the said amount of Rs.55,22,860/-. On the other hand, prima facie, we find that the laid-down procedure has not been followed by the Applicant in availing CENVAT Credit on the input invoices raised in the name of Head Office - Prima facie not in favour of assessee - Stay granted partly.
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