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2022 (7) TMI 922 - AT - Service TaxWaiver of demand and additional interest for delayed payment of Service Tax - services received from associated enterprises - short reversal of Cenvat credit for bad debt written off by the Appellants - demand of short reversal of Cenvat credit by adding the value of export of services in the total turnover (in the numerator) as per formula given under Rule 6(3A) of the Cenvat Credit Rules, 2004 - HELD THAT:- The Ld. Adjudicating authority placing reliance on the CBIC’s Circular No. 868/8/2008-CX dated 09/05/2008, wherein it was already clarified that the export of services, without payment of service tax, are not to be treated as exempted services for the purposes of Rule 6(3) of the CCR, 2004. The Appellant submits that under Rule 6(3A)(b)(iii) of the Cenvat Credit Rules 2004, the term 'N' inter alia includes total value of taxable and exempted services provided. Under the Finance Act as well as Cenvat Credit Rules, 2004, only the terms 'exempted services' and 'taxable services' were defined. The term ' taxable service' has been defined under Section 65(105) of the Finance Act to mean the services specified under the various sub-clauses. The term 'exempted service' was defined, during the impugned period to mean taxable services which are exempt from the whole of the Service Tax leviable thereon and includes services on which no Service Tax is leviable under section 66 of the Finance Act - the Appellant has not short reversed Cenvat credit under Rule 6(3A) of the CCR, 2004 and we therefore drop the proceedings to the above extent by allowing the Appeal filed by the assessee. Demand of additional interest on delayed payment of Service Tax on account of services received from associated enterprises - HELD THAT:- The lower authority has given a finding that the tow enterprises namely PWC Services BV Netherlands and PWC Global Licencing Services Corporation, Canada cannot be treated as associated enterprises as the same has not been declared by the assessee in their Return of Income tax filed in form 3CEB for FY 2009-10 and hence the payment of Services Tax basis the booking of expense cannot be sustained - since the Ld. Adjudicating authority has not gone into the details of the matter, it would be prudent in the interest of justice, that the matter be remanded to the Adjudicating authority to verify as to why such enterprises were not disclosed in Income Tax returns and pass a reasoned and speaking order thereafter. Needless to mention an opportunity ofhearing should be given to the assessee concerned. Following the decision of the Chandigarh Bench in SBI CARDS AND PAYMENTS SERVICES PVT LTD VERSUS COMMISSIONER OF SERVICE TAX, DELHI [2022 (1) TMI 449 - CESTAT CHANDIGARH], it is opined that the departmental Appeal as regards reversal of Cenvat credit on amounts written off as bad debt by the assessee cannot be sustained and the same is dismissed accordingly. Appeal disposed off.
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