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M/s Manupatra Information Solutions Pvt Ltd Versus Commissioner of Central Excise, Customs And Service Tax, Noida

2016 (3) TMI 527 - CESTAT ALLAHABAD

Cenvat credit availed on common input services for rendering taxable output services - Held that:- Internet service, web-hosting service and content service is wholly attributable to the activity of rendering taxable output service. Thus, the demand attributable to these input services is set aside. So far renting of premises is concerned, it is evident that the space provided on 2nd Floor of the same building is for the exempt activity of publishing of books and CDs, have been provided without .....

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Therefore, by taking a lenient view, the penalty is reduced under Rule 15 (3) of the Cenvat Credit Rules. - Decided partly in favour of appellant - ST Appeal No. 53897/2014 - Dated:- 6-1-2016 - Anil Choudhary, Member (J) For the Appellant : Shri S C Kamra, Adv For the Respondent : Shri Chatru Singh, Asstt. Commr (AR) ORDER Per Anil Choudhary The issue in this appeal is with regard to Cenvat credit availed on common services utilized by the appellant for rendering taxable output services and cle .....

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e output service which subscribers of date base access and retrieve information therefrom. That SCN dated 17/9/12 was issued, as it appeared to revenue that the appellant have utilised common input services for manufacture and clearance of exempt goods and also in providing taxable output service but have failed to either pay 5%/6% as required under Rule 6 (3)(i) or Cenvat credit in the ratio of turn over under rule 6(3) (ii) of CCR. Accordingly, the show cause notice proposed to bifurcate the c .....

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t service. As regards input service under the category renting of immovable property, the appellant contended that there are two separate rent agreements, one is for the space occupied for taxable output service for which rent is paid and the other is for cleaning of exempted goods for which no rent have been charged by the owner or the service provider. Both agreements are of even date. Further, the appellant admitted the liability for reversal on common input services like, courier service, ma .....

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pellant preferred appeal before the ld. Commissioner (Appeals). It was urged that so far the Internet service and content service is concerned, the same is exclusively attributable to taxable service as well as renting of immovable property which was occupied exclusively for taxable output service in view of separate agreement for the same. The ld. Commissioner (Appeals) observed that Internet service and content service can be used for printing of books and preparation of recorded CDs. In this .....

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not have any clause for payment of rent. It was inferred that as separate premises is used but no separate rent is being paid, hence, the Cenvat credit of service tax paid on renting of the property, also carries the component of Cenvat credit taken in respect of service tax paid in respect of the exempted goods. So far the reversal was made by the appellant in respect to other services, it was held that the same does not represent the correct figure and accordingly, the appeal was dismissed. 4. .....

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rpose of rendering outcome service which is taxable and as such, the ld. Commissioner has erred in considering that the same as common input service. So far as renting of premises, is concerned, appellant is providing output tax service having occupied for monthly rent @ ₹ 40/- per Sq/ft with effect from 1st April, 2007 and the appellant is occupying about 2083 Sq/ft. From the same landlord vide separate agreement of even date, the appellant have occupied a portion of 2nd floor in the same .....

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