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2017 (3) TMI 562 - AT - Service TaxCENVAT credit - input services written off - out of pocket expenses, later written off as bed debt - 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 reimbursed by the receiver of the service and later written off from their books of account being bad debt? - Held that: - Rule 3(5B) of CENVAT Credit Rules, 2004 reveals that it is directed against the input or capital goods and not applicable to the input services, therefore, recovery proceeding initiated by Revenue on the credit attributable to the written 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.
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