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2017 (4) TMI 756 - AT - Service TaxCENVAT credit - denial on the ground that services were provided by MSM Singapore therefore MSM India has neither provided any service nor required to obtained the registration and also not required to pay any service tax - With effect from July, 2012 MSM-India took service tax registration by giving the care of address of MSMPL, its sole agent in India. It does not have any physical establishment, infrastructure or equipment in India for production and up-linking of programs, i.e. IPL, T.V. Serials 85 Films. - case of Revenue is that appellant is hot a service provider as the service was provided by their Singapore entity therefore being non service provider they are not entitle for the Cenvat credit. Held that: - There is no dispute that the entity in India and Singapore is the same entity i.e. M/s. MSM Satellite (Singapore) Pte. Ltd therefore the service provider is the same company even though the service was provided from different location. It is admitted fact that even though if the contention of the Revenue is accepted that services were provided by MSM Singapore, but it is also a fact that services were received in India therefore service per se is taxable and the government is legally required to collect the service tax on such services and it had indeed collected. Therefore service tax even though paid by MSM Singapore through their office in India discharged the service tax payment of services tax cannot be disputed. In such a situation Cenvat credit is legally admissible to the appellant - once registration was granted by the department and the service tax was collected consequent Cenvat credit cannot be denied. As per the service tax provisions the service tax liability is based on the place of consumption, therefore in the present case not only the services provided in India but also consumed in India therefore place of provisions is India only. Hence service tax registration obtained by M/s. MSM Satellite (Singapore) Pte. Ltd in India is absolutely in order. Extended period of limitation - penalty - Held that: - entire activity was in the knowledge of the department as the appellant vide their letter dated 24-5-2012 had made detailed representation to the CBEC to seek continue deemed broadcaster status of MSMPL and CBEC when not responded, appellant approached for registration dated 2-7-2012 wherein they have set out detailed reason for seeking registration and also stated that they will be paying service tax on distribution and claiming input service credit. In this fact there is no suppression of facts on the part of the appellant with intent to evade payment of duty - demand of extended period is not sustainable, hence equal amount of penalty u/s 11AC being consequential will also not sustain and same is set aside. As regard penalty imposed upon BCCI on the ground that they have fraudulently passed on Cenvat credit, availment of Cenvat credit by M/s. MSM Satellite (Singapore) Pte. Ltd is legal & correct, the consequential penalty does not survive. Moreover, the payment of service tax made by BCCI is absolutely legal & correct firstly for the reason that being the payment of service charges in Indian rupees the transaction is not of export, Secondly even it is presumed as export it is option of service provider, to opt for payment of service tax on output service or not. In this position, imposition of penalty upon BCCI and on it's officials is absolutely incorrect and illegal. Appeal allowed - decided in favor of appellant.
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