TMI Blog2019 (5) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices received from abroad. CENVAT Credit - input services - air ticket booking - employee gratuity - factory insurance - factory building maintenance - HELD THAT:- The Learned Commissioner in the impugned order has observed that the air ticket booking, employee gratuity, factory insurance expenses and factory building maintenance on description itself appears to have nexus with output services - Further, Explanation to Rule 3(4) of CCR, 2004 was inserted with effect from 01.07.2012 whereby restriction was imposed but in the present case, the period involved is April 2010 to July 2012 therefore for one month of July 2012, the appellant is liable to pay Service Tax in cash and is not entitled to utilize CENVAT credit for the month of Ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the period from December 2009 to July 2012, it was observed that the appellants have wrongly utilized CENVAT credit for payment of Service Tax on import of Information Technology Software Service . They have also availed CENVAT credit on certain ineligible input services viz. air ticket booking, employee gratuity, factory insurance, factory building maintenance. On these allegations, a SCN was issued to the appellants demanding Service Tax of ₹ 39,61,796/- in cash and CENVAT credit of ₹ 1,37,600/- availed by the appellant during the period 2010-11 to 2012-13 plus interest at the rate applicable and the penalty was also proposed. After following the due process, the Original Authority confirmed the demand proposed in the SCN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormance Materials Pvt. Ltd. v. CCT, 2018 (10) TMI 324- CESTAT Bangalore. Kansara Modler Ltd. v. CCE, Jaipur-II, 2013 (32) STR 209 (Tri. Del.). UOI v. Kansara Modlers Ltd., 2018 (8) TMI 1230-RAJASHTHAN HIGH COURT. 4.1. He further submitted that with effect from 01.07.2012, the definition of the term output service is amended and an Explanation is inserted to Rule 3(4) of CCR, 2004. The provisions of Rule 2(p) and Explanation to Rule 3(4) of CCR, 2004 read as follows: (p) output service means any service provided by a provider of service located in the taxable territory but shall not include a service,- (1) Specified in Section 66D of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw is settled in favour of the appellant by various decisions relied upon by the appellant cited supra. This Tribunal in the case of Plansee India High Performance Materials Pvt. Ltd. (Supra) has considered the same issue and held that there is no bar for utilization of CENVAT credit for deemed service provider to pay Service Tax liability from CENVAT credit in terms of Section 66A. In this regard, it is relevant to reproduce the said findings of the Tribunal which is recorded in Para 6,7 8: 6. After considering the submissions of both parties and perusal of material on record as well as the decisions relied upon by the appellant cited supra, I find that there is no bar for utilization of CENVAT credit for deemed servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds the payment of input service paid on the basis of reverse charge mechanism. We find that there are different views expressed by different Tribunals, however, the jurisdictional High Court of Karnataka in the case of M/s. Aravind Fashions (supra) observed that in the instant case that he is the recipient of service tax, the service provided is outside the country. In law, he is treated as service provider and he is levied tax. In other words, the liability to pay tax on the services which he has received is fastened on him in law. It is to discharge this liability he is entitled to use the CENVAT credit which was available with him and therefore, the Tribunal was justified in interfering with the order passed by the Commissioner. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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