TMI Blog2024 (1) TMI 778X X X X Extracts X X X X X X X X Extracts X X X X ..... ere provides the time limit for utilisation of the input services nor does it require any one-to-one co-relation that input service availed in any particular month should be utilised when the assessee provides output service. The Revenue is required to take a practical approach that the process for providing output service takes time and it is essential on the part of the appellant to make proper arrangements so that output service can be provided without interruption. The period prior to providing the output services and billing its members for output services, the appellant incurred expenditure from April, 2012 to October, 2012 which were essential and used for providing output services. The Authorities below have held that the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere received by them prior to their obtaining registration and commencing of output service. 2. On the basis of detailed scrutiny of records, it was observed that the assessee have availed and used credit of input service of Rs.1,11,435/- during the month of November, 2012, on housekeeping service, security service, repairs, and maintenance service etc. when they started providing the output services i.e. Management, Maintenance or Repair Service to the residence of Mahima Panorama Resident Welfare Society, whereas these input services were used during the period from April, 2012 to October, 2012. Accordingly, show cause notice dated 03.03.2016 was issued to the appellant as to why the Cenvat credit of Rs.1,11,435/- should not be di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices and before registration of the appellant company. 5. The principle is that any service taken for providing output service is input service if such service is used by a provider of output service. The statutory provisions governing the Service Tax nowhere provides the time limit for utilisation of the input services nor does it require any one-to-one co-relation that input service availed in any particular month should be utilised when the assessee provides output service. I agree with the submissions made by the learned Counsel for the appellant that sometimes an entity takes time to start its taxable activity but till that time, the sssessee avails various services which are necessary for providing the output service. The Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds removed subsequently. When subsequently the registration was taken for rendering the output services on their own, utilisation of available credit on the said service, is also permissible. The appellant was entitled to utilise the same without such restriction. Thus the utilisation of credit was permissible in view of the extended definition of output service and in view of the fact they also started rendering output services. The decisions cited also support the case of the appellant. Therefore, we hold that credit taken and its utilisation were regular. 7. Similar are the decisions referred to by the learned Counsel for the appellant in Imagination Technologies India P. Ltd. vs. Commr. of Central Excise, Pune-III - 2011(23) STR 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it is set aside. 8. That does not mean that the assessee is entitled to refund as claimed by him consequent to setting aside these orders. As is clear from the order of the original authority in the show cause notice, they have categorically called upon the assessee to furnish the particulars of the taxes paid on input services. They called upon the assessee to produce the invoices, bills, receipts to substantiate their claim for their verification. The assessee would be entitled to the refund of the Cenvat credit only on his proof that he has paid input Service tax. In that view of the matter, the matter is now remanded back to the adjudicating authority to decide the correctness of the claim made by the petitioner. Liberty i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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