Expenses incurred abroad for location selection and shooting are...

Expenses incurred abroad for location selection and shooting are treated as services provided and availed outside India under Place of Provision rules; consequently no service tax under reverse charge is payable, and the related demand is set aside. Short reversal of cenvat credit on common input services must be computed on the value of services provided during the financial year per Rule 6(3A); the appellant's pro rata reversal is held correct and the demand is set aside. Cenvat credit on subcontracted digital cinema services and on capital goods (projectors) used for both taxable and exempt supplies is allowed. Penalties under the Finance Act are set aside for lack of fraud or willful suppression.