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2020 (2) TMI 41 - AT - Service TaxValuation - turnover/transaction charges on the brokerage charges/commission - Section 65 of the Finance Act - CBEC Circular F No. 137/57/2006 CX4 dated 18.05.2007 - HELD THAT:- The Appellant does not dispute the liability of payment of service tax after 16.05.2008. However, the Appellant is aggrieved by the non-consideration of its prayer regarding the benefit of Cenvat Credit on the input services used by the Appellant. In this regard, we find that the issue has been clarified by the Central Board of Excise and Customs vide Circular dated 18.05.2017. This has also been clarified further by the Circular dated 17 September, 2010. The two Circulars clarify that turnover/transaction charges are liable to be included for the purpose of computation of service tax. The circulars are in conformity with the provisions of Section 67 of the Finance Act. The order passed by the Commissioner, therefore, does not suffer any infirmity on this ground. CENVAT Credit - HELD THAT:- The settled legal position is in favour of the Appellant as is clear from the decisions referred to above. The Appellant is entitled to avail Cenvat Credit on the input service used in providing output service. The Commissioner (Appeal) has, however, not granted the availment of Cenvat Credit to the Appellant, to which the Appellant was entitled to in terms of the Cenvat Credit Rules after the verification of the records. Levy of interest and imposition of penalty - HELD THAT:- The Appellant is liable to pay the same in terms of the provisions of Section 76, 77 and 78 of the Act, as in spite of having collected the amount representing service tax it failed to deposit the same with the Department. Accordingly, that portion of the order is sustained. Matter remanded back to the adjudicating authority to consider the benefit of Cenvat Credit to the Appellant in terms of Credit Rules - remaining portion of the impugned order is sustained - appeal allowed in part and part matter on remand.
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