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2019 (4) TMI 132 - AT - Service TaxCENVAT Credit - Provider of CHA services - input services - rental charges of godowns - stevedoring charges - reimbursable expenses - extended period of limitation - Held that:- The stevedoring and godown rent are reimbursable expenses as they do not directly pertain to the Custom House Agent services rendered by them although they provide/facilitate these services also to their clients. In the instant case, the taxable service rendered by the appellant is Custom House Agent service and renting of godowns and stevedoring are separate services which are provided to their clients. The appellant themselves are treating these as reimbursable expenses incurred by them on behalf of their clients - such a service cannot become an input service for the Custom House Agent services provided by the appellant. The appellant had wrongly availed the CENVAT Credit on these two input services and the same needs to be recovered from them. Since the appellant has availed CENVAT credit on the services which, prima-facie, are not at all covered the definition of ‘input services’ under CCR 2004 and they have not included the value of these services in their output services, the appellant has taken a credit in violation of the Rules with the intent to evade payment of service tax. Therefore, the extended period of limitation was correctly invoked. The demand is sustainable along with interest - there is no reason to interfere with the imposition of penalty under Rule 15(3) of CCR 2004, read with Section 78 - appeal allowed in part.
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