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2017 (3) TMI 562
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....dent-Revenue ORDER Per Dr. D.M. Misra Heard both sides. 2. This appeal is filed by the appellant against the Order-in-Appeal No.AHM-SVTAX-000-APP-181-14-15 dated 29.12.2014 passed by the Commissioner (Appeals II), Central Excise, Ahmedabad. 3. Briefly stated the facts of the case are that the appellants are engaged in providing output services, namely, services like statutory audit ....
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.... the appellants submits that in the course of rendering Chartered Accountant services to various clients in addition to professional fees, they also billed out of pocket expenses incurred by them in providing such output service. However, the service tax is paid on the total value i.e. professional fees as well as on the out of pocket/reimbursable expenses shown in the respective bills. Their clie....
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....int needs to be addressed is: whether the appellants are eligible to CENVAT credit of the service tax paid on the value of service, namely, out of pocket expenses shown in their bill along with professional fees, but not reimbursed by the receiver of the service and later written off from their books of account being bad debt. Revenue sought to recover the credit referring to Rule 3(5B) of CENVAT ....
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....T credit paid earlier subject to the other provisions of these rules. 7. A close reading of the said Rule reveals that it is directed against the 'input' or 'capital goods' and not applicable to the input services , therefore, recovery proceeding initiated by Revenue on the credit attributable to the written off of value of the input service from the books of accounts, being bad....