TMI Blog2020 (2) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... r, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unting to ₹ 14,10,983/- pertaining to the period from 16.05.2008 onwards has been sustained. The penalty, which was imposed has also been sustained in the said order on account of the fact that the Appellant had collected the service tax but failed to deposit the same in the Government Exchequer. It has also been observed that the Appellant, although registered under the Service Tax Act in respect of other services, failed to mention about collection of service tax in respect of disputed service in the ST-3 Return filed by it to the Department, and so invokation of the extended period of limitation was justified. Being aggrieved, the Appellant is in appeal before this Tribunal. 2. Brief facts of the case are that the Appellant is e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e recovered from the clients during that period and were deposited with the Commodity Exchange treating them as pure reimbursement expenses and as such no service tax was paid for these amount. (ii) That the services of the commodity exchanges came into existence with effect from 16.05.2008, as clarified by CBEC Circular F No. 137/57/2006 CX4 dated 18.05.2007. The Appellant had collected the charges as turnover/transaction charges on behalf of commodity exchanges and remitted the same to MCEI (Multi Commodity Exchange of India, NCDEC (National Commodity Derivative Exchange of India). (iii) That the Appellant has not availed any Cenvat Credit in terms of Cenvat Credit Rules, 2004 (hereinafter referred to as the Rules) on turnover/trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order. 6. We have heard learned Advocate on behalf of the Appellant and learned Departmental Representative on behalf of Revenue. 7. The issue involved in this case is regarding the levy of service tax on the turnover/transaction charges which has been imposed on the Appellant under the provisions of Section 65 of the Finance Act. 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. Paragraph 4 of the Circular i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fall under the category of any of the existing taxable services. 8. This has also been clarified further by the Circular dated 17 September, 2010. The relevant paragraph 5 is also reproduced as under; 5. From the above it is clear that in case the expense is the liability of the service provider it has to be included in the taxable value. In case it is the liability of the service receiver and the service provider pays the same acting as a pure agent then such amount is not includible in the taxable value. 9. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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