Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2023 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 960 - CESTAT MUMBAIRecovery of irregularly availed ineligible cenvat credit - reverse charge mechanism - expenditure incurred in foreign currency in respect of contribution towards social security for employees of their overseas holding company - HELD THAT:- In the present case, service tax was not payable on the contribution towards social security which was part of salary paid by the employer to the employee. It is found that though the service tax which was not payable was paid, Revenue has not refunded the said tax paid by the appellant. It is also noted that the appellant has taken cenvat credit of equal amount. Therefore, there is no loss to the exchequer. On going through the ruling by Hon’ble Bombay High Court in the relied upon case of THE COMMISSIONER OF CENTRAL EXCISE, PUNE VERSUS AJINKYA ENTERPRISES [2012 (7) TMI 141 - BOMBAY HIGH COURT] it is found that Once the duty on final products has been accepted by the department, CENVAT credit availed need not be reversed even if the activity does not amount to manufacture. - In the present case, Revenue has retained service tax which was not to be paid and the appellant has availed cenvat credit of equal amount and utilized the same for payment of service tax for other services. Demand set aside - Appeal allowed.
|