TMI Blog2022 (1) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... t has taken cenvat credit are input services in terms of Rule 2(l) of the Cenvat Credit Rules, 2004 and is a provider of output service. Therefore, in terms of Rule 3 of the Cenvat Credit Rules, 2004, we hold that the appellant is entitled to avail cenvat credit on input services in question. Further, there is no such provision in the Cenvat Credit Rules, 2004 or in the Finance Act, 1994 for reversal of cenvat credit for the services provided for which no consideration for service provided is received by an assessee. The appellant has correctly availed the cenvat credit on input services although the amount of non-recoverable taxable service has been written off by the appellant for the period prior to 01.04.2011. The appellant has admitted at bar that they have paid service tax on all the taxable services provided by them after 01.04.2011 at the time of provision of service. Therefore, if it is so, the appellant cannot be liable for reversal of cenvat credit for the services provided after 01.04.2011 on which the appellant has paid service tax. Advertisement sales promotion services - HELD THAT:- On going through the said invoice, it is found that the description of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, catering and event management services. Impugned orders were passed by confirming the demands holding that the amount written off as bad debts, the appellant is not entitled to avail cenvat credit of input services attributable to the amounts written off and denial of cenvat credit on input services received from IRCTC by classifying them as catering services. Against the said orders, the appellant is before us. 4.1 The ld. Counsel appearing on behalf of the appellant submits that the similar issue has been decided in their favour by the adjudicating authority in their own case for the period April 2004 to March 2009 and April 2012 to March 2015 vide Order-in-Original No. DLI-SVTAX-004-COM-119-16-17 dated 31.03.2017, wherein it has been held that the services received by the appellant were used in provision of taxable output service, therefore, condition of Rule 2(l) of the Cenvat Credit Rules, 2004 was satisfied and there is no provision in Cenvat Credit Rules, 2004 which provides for reversal of credit in the event of non-payment of service tax as a result of non-receipt of consideration, therefore, the said credit is not required to be reversed. 4.2 He further submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd transaction of co-brand credit cards. These documents clearly establish that IRCTC provides advertisement services by displaying appellant s credit cards on its website, advertisements etc and was accordingly receiving a consideration. Nowhere in any communication/invoice for agreement mentioned that the appellant is receiving catering service from IRCTC. The demand was confirmed only on the basis of assumption and presumption which is not sustainable. He also submitted that demand of interest is not sustainable and penalty is also not imposable. 5.1 On the other hand, the ld. A.R. supported that impugned order and submitted that the order dt. 31.03.2017, relied upon by the ld. Counsel for the appellant, covers the period prior to 31.03.2009 and the appellant had also made the pre-deposit of service tax for recoveries made against bad debts written off initially, therefore, the said order is not applicable to the facts of this case. 5.2 It is his further submission that on recoveries made during 2011 to 2017, the appellant had deposited ₹ 42.31 crores. Relying on these facts, the said order was issued and demands were dropped. But there is no evidence to that effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature and accordingly, there was no specific provision for reversal of cenvat credit. The remission, so to speak, was suo moto, on non receipt of consideration, therefore, the reversal of cenvat credit is not marred by absence of specific provision. Further, no cenvat credit would be admissible on services which are rendered without consideration, even though the same would be taxable in as much as they fall under one of the sub-clauses of Section 65(105) of the Finance Act, 1994. Then, how can credit be allowed to be retained on services on which no consideration has been received in the subject case. 5.5 He further submitted that the cenvat credit is Government money, temporarily entrusted to an assessee on the assurance and for the sole purpose of utilizing the same for discharging Central Excise duty or Service Tax which accrues to the Government. The assessee becomes eligible to keep it in its books of accounts after meeting a wide variety of conditions and maintaining/retaining the records/documents. Still, the same remains Government s money in temporary custody of the assessee. This is very clearly brought out when we examine Rule 11 of the Central Credit Rules, 2004 wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant cannot be liable for reversal of cenvat credit for the services provided after 01.04.2011 on which the appellant has paid service tax. 7.2 With regard to denial of the cenvat credit on the invoices issued by IRCTC, we have examined the invoices provided by the appellant during the course of hearing. A sample invoice is extracted herein below: 7.3 On going through the said invoice, we find that the description of the service provided by IRCTC is SBI co-brand registered as SBI . The said invoice does not prescribe that IRCTC has provided any catering service to the appellant. In fact, the lower authority has fell in error holding that IRCTC is providing only catering service and the denial of cenvat credit is only on the basis of assumption and presumption. 7.4. In view of the above, we hold that the appellant is entitled for cenvat credit on the services provided by IRCTC as advertisement services. 8. In view of the above observation, we do not find any merits in the impugned orders and arguments advanced by the ld. A.R.; therefore, we set aside the impugned orders and allow the appeals with consequential relief, in any. (Operative part of the order p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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