TMI Blog2021 (9) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... tax on the amounts raised in the debit notes - HELD THAT:- The Show Cause Notice is issued only to the service recipient (appellant herein) who has availed the credit of service tax collected via the debit notes. If the department holds that the payment of service tax is legal and proper, then the credit availed on the tax cannot be denied alleging that no service is provided. Further on the issue whether debit notes are valid documents to avail credit, it has to be stated that though Rule 9(1) of CENVAT Credit Rules, 2004 does not mention debit note as a document on which credit can be availed, when all necessary particulars are mentioned the credit cannot be denied for the only that it is a debit note - In COMMISSIONER OF CENTRAL EXCISE JAIPUR-1, JAIPUR VERSUS BHARTI HEXACOM LTD. [ 2018 (6) TMI 435 - RAJASTHAN HIGH COURT] the credit availed on debit notes was held to be eligible - In the case of M/S GABRIEL INDIA LIMITED VERSUS CCE ST, INDORE [ 2016 (12) TMI 155 - CESTAT NEW DELHI] it was held that credit availed on debit notes cannot be denied when the eligibility of credit is not disputed - the denial of credit on the ground that the document on which credit is availed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner (Appeals) who vide the order impugned upheld the same. Hence this appeal. 2. The ld. Counsel Shri K. Pawan Pahwa and Shri Manoj Misra appeared and argued for the appellant. He submitted that the appellant had executed a cost sharing agreement with their group company M/s. Gates India Pvt. Ltd. to achieve operational efficiencies. Under this agreement, the companies proposed to share the cost incurred on office space, furniture and fixture, other administrative services. It is argued by him that it is prevalent practice in the industry that group of companies under common ownership rent/lease a common building and avail services commonly for achieving efficiencies in operation such as office space, advertising, home resources, security services, banking, financial and insurance service. Under such agreement, one of the companies will make payments for lease, rent, electricity charges and other administrative charges which are the common service that are shared by them and these expenses are then shared between the group of companies in an agreed manner. The appellant has thus entered into cost sharing and reimbursement agreement dated 1.4.2012. On the basis of this agree ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rely a reimbursement so as to pass on the cost incurred has been analyzed in the similar set of facts by the Hon'ble jurisdictional High Court in the case of Modular Auto Ltd. Vs. CCE, Chennai in CMA No. 723 and Ors. of 2018 dated 14.8.2018. The relevant portion is as under:- 11. The short question, which falls for consideration, is whether the department as well as Tribunal could have held what was availed by the assessees as credit is only a reimbursement and it is an attempt of BIL to pass costs incurred by them towards MPLS . 12. Mrs. Aparna Nandakumar, learned Senior Panel Counsel for the Revenue, produced a lecture on Multi Protocol Label Switching with Quality of Service in High Speed Computer Network to explain as to what is Multi Protocol Label Switching (MPLS) and it has been stated therein that it is a method that directs data from one system mode to the next based on short path labels rather than long network addresses in high-performance telecommunication association. Referring to a chart showing the working methodology, it is submitted that it is facility created and the beneficiary is BIL and no input service is rendered by the BIL to the assessees for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtion of service tax component which was collected from the assessees by BIL was only the amount on which the CENVAT credit has been claimed by the assessees. Therefore, unless and until the assessment made on BIL was revised, which obviously could have been done, at this juncture, on account of the expiry of the period of limitation, the interpretation given by the Commissioner (Appeals) as well as the Tribunal with regard to the nature of invoice raised on the assessees is unsustainable. Furthermore, we find that the reason assigned by the Tribunal in para 6.2 stating that the activity performed by the BIL for monitoring of production activities of the assessees cannot by any stretch of imagination be considered as an input service or in relation to the manufacture of final products of the assessees, is a statement, which is unsubstantiated by any record. At best, it can be taken as a personal opinion of the Tribunal, which could not have been a reason to reverse the credit availed by the assessees. 17. What is important to note that the assessees specific case is that there has been a service by BIL to the assessees in the matter of retrieval of data and service tax has be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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