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2016 (1) TMI 23 - AT - Service TaxCenvat Credit - input services - receipt of advertisements services for promoting the mutual fund - Held that:- adjudicating authority has admitted the fact that the amount incurred on Advertisement is not reimbursed but he held that it is still to be considered as reimbursable and cannot be considered as non-pure agent service. - it is established that role of asset management is not only related to managing the assets but also to implement overall schemes of M/s.SMF. Therefore Revenue's contention that they cannot undertake any advertisement for promoting the schemes is not justified. - as per SEBI Regulations, the prescribed limit of upto 6% is reimbursable from the fund owner and in the present case appellant not claimed any credit on the amount reimbursed from SMF only after exceeding the limit, the expenses on the advertisement cost was duly included in the value of output taxable service and discharged service tax on the gross value. - Credit allowed since it is an eligible input service. Availment of credit on brokerage fee - service tax was paid under reverse charge method - Held that:- Revenue had issued a clarification to the appellant in their letter dt. 3.10.2012 to the appellant that they are eligible for cenvat credit on the service tax incurred and paid by the appellant on brokerage charges. We also find support from the Government advertisement issued by CBEC after the introduction of negative list wherein the Board has categorically clarified that service tax paid on the brokerage commission by Mutual Fund and Asset Management Companies is available as credit for paying service tax on their output services. This advertisement was issued consequent on withdrawal of service tax exemption on brokerage commission w.e.f. 1.4.2015. Therefore, it is evident that when there was no exemption for service tax, the Board had categorically clarified that assessees have to pay service tax under reverse charge and they are eligible for availing credit. - Credit allowed. Duty paying documents - validity - Held that:- respondent is entitled to avail credit of service tax on the basis of credit of service tax on the basis of TR-6 challan. Appellants are eligible for taking credit on the service tax paid by them on brokerage commission and the demand confirmed by the adjudicating authority is liable to be set aside. Since the appellants succeeds on merits, we do not go into the limitation issue. - Decided in favor of assessee.
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