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2018 (1) TMI 1054 - AT - Service TaxWhether the appellant can be allowed to adjust the excess paid service tax to the liability payable for the subsequent months? - Held that: - The Tribunal in the case of General Manager (CMTS) Vs. Commissioner of Central Excise, Chandigarh [2014 (8) TMI 589 - CESTAT NEW DELHI], where it was held that if excess payment of tax in a month is not on account of reasons involving interpretation of law, taxability, classification, valuation or applicability of exemption notification and is purely on account of inability of the assessee to exactly determine the total amount collected during the month against the bills raised, as a result of which he had determined his tax liability or estimation basis, the excess amount of tax paid during the month can be adjusted against his tax liability during other months and in this regard, there cannot be any monetary limit - the demand raised on this ground is unsustainable and requires to be set aside. CENVAT credit - service tax paid on advertisement on MTC buses - Held that: - As per Rule 3 of CENVAT Credit Rules, credit can be availed on service tax / duty when the documents evidence the payment of the same. Since the documents on which credit has been availed does not evidence the payment of service tax, we are of the view that the credit availed is incorrect - demand upheld. CENVAT credit - rent-a-cab service - Held that: - During the relevant period, prior to 1.4.2011, the definition of input services included the words activity relating to business . Therefore, the definition had wide ambit and had included the services namely rent-a-cab service - In Commissioner of Central Excise, Raipur Vs. Beekay Engg. & Castings Ltd. [2009 (6) TMI 96 - CESTAT, NEW DELHI], the said services have been held to be eligible for credit - the disallowance of credit is unjustified. CENVAT credit on capital goods imported during the period January 2007 - Held that: - According to Rule 4(2) of CENVAT Credit Rules, 2004, credit can be availed not exceeding 50% of duty paid on capital goods in the same financial year and the balance amount of CENVAT credit has to be availed in the subsequent year. Therefore, availment of entire credit in the same financial year is irregular - The appellant has not contested the same and therefore the demand of service tax under this category is sustained. Penalties - Held that: - The ld. counsel has explained that the appellant had not rendered any sponsorship service and they had only extended donations to orphanage and charity purpose and it was wrongly accounted in their books of accounts as sponsorship service. Taking into consideration these aspects, the penalties in regard to these issues are unwarranted and requires to be set aside which we hereby do. Appeal allowed in part.
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