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TMI Blog2009 (3) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... and had rightly been deposited with the Government. The refund claim was made on the ground that the appellants are not liable to pay service tax on sponsorship service. There is no dispute that the appellants were not liable to pay the service tax. The learned advocate submitted that the Commissioner (Appeals) as well as the Original Adjudicating Authority have contradicted themselves when they observed that Chartered Accountant could not have certified that service tax was not collected from the customers when further documents submitted nowhere mentioned that excess tax collected was returned to the clients. As regards the second claim of refund for Rs. 2,23,894/- on business exhibition service, again there is no dispute that the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the liability of service tax has not been passed on and the appellants have failed to discharge this liability. As regards the claim for refund of credit of service tax, on Business Exhibition Service, he submits that the credit was taken much later than the period of six months from the date of payment of service tax and therefore appellants are not eligible for the credit and consequently they are not eligible for the refund also. In support of this contention he has cited several decisions of the Tribunal. 4. I have considered the rival submissions in detail. As regards the refund claim on the sponsorship service, admittedly the service tax amount was not separately shown in the invoices for domestic clients. However appellants also cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount paid initially was not the final one and the finalization took some time and therefore credit was taken much later. The second contention is that in terms of sub-rule (7), of Rule 4 of Cenvat Credit Rules, there is no time limit prescribed. Unlike Cenvat credit on inputs/capital goods where credit can be taken immediately on receipt of inputs/capital goods, in the case of service tax the credit can be taken only after the payment is made in respect of the bills raised for providing service and the Rule also requires that service tax is also paid. Therefore the service receiver is obliged not only to make payment but would also be responsible to ensure that service tax has been paid. In this case admittedly the payments were made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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