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2024 (1) TMI 584 - CESTAT CHENNAICENVAT Credit - exempted service - providing onsite development of software services to the branch office situated abroad - availing Cenvat credit of Service Tax paid on common input services used for providing taxable as well as exempted services - failure to maintain separate accounts for receipt and use of input services used for providing exempted services and taxable output services - liability to pay an amount equal to six per cent of the value of exempted services provided by them, as per Rule 6(3)(i) of the Cenvat Credit Rules, 2004. HELD THAT:- The issue has been considered by the Tribunal in the appellant’s own case and has set aside the demand M/S. COGNIZANT TECHNOLOGY SOLUTIONS INDIA PRIVATE LIMITED VERSUS COMMISSIONER OF GST & CENTRAL EXCISE [2023 (7) TMI 62 - CESTAT CHENNAI] holding that There is no allegation in the Show Cause Notice that CTS USA was only a front company for services rendered by CTS India in the USA. This being so no taxable service has been rendered by CTS India in USA with respect to the impugned figures disclosed in their Income Tax Form 3CEB for the Financial Year 2012-13 and 2013-14. This entry was the trigger for the allegations in the show cause notice that culminated in the impugned order. Once no service was rendered by the appellant in USA, which is exigible to tax under the Finance Act 1994, all charges under the said Act against the appellant must fail. Thus, following the decision in the appellant’s own case, the demand, interest or penalties cannot sustain and requires to be set aside - the impugned order set aside - appeal allowed.
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