TaxTMI 
TaxTMI 
2020 (1) TMI 69
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.... Himadri Specialty Chemical Ltd., against demand of service tax confirmed by the learned Commissioner, Service Tax, Kolkata vide Order-in-Original dated 13.06.2016. 2. The facts of the case in brief are that the appellant is engaged in the business of manufacture of coal tar products at various manufacturing units for which they have obtained registration with jurisdictional Central Excise department for payment of central excise duty. The Registered Office of appellant is registered with Service Tax department for payment of service tax under Reverse Charge Mechanism on various input services and also as an Input Service Distributor ('ISD') for distribution of input service credit to its various manufacturing units. The appellant has no....
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.... foreign remittances made to International Finance Corporation (IFC) towards Out of Pocket travel expenses. Interest and penalty dropped on the said amount. (iv) dropped proposal for recovery of Cenvat credit on input service of Rs. 2,70,401/-. (v) confirmed demand for recovery of Cenvat credit on input service of Rs. 40,17,000/- under Rule 14 of CCR 2004 along with interest thereon in respect of services provided by Axis Bank. He however set aside penalty in respect of said amount. (vi) imposed penalty of Rs. 10,000/- each under Section 77(1)(a) and Section 77(1)(d) of the Finance Act 1994. 3. Shri Rajeev Agarwal, Chartered Accountant appeared for the appellant and Shri S.S.Chattopadhyay, Authorized Representative, appeared for....
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.... not the credit /loan amount got disbursed to the appellant. He submitted that the fact that the services have been rendered by Bank for processing the loan / credit facility is not in dispute. He made an alternate submission that since the appellant is an ISD, no demand can be made upon them under Rule 14 of the Credit Rules. As per the above provision, recovery for wrongful utilisation of credit can be made from a manufacturer or provider of output service only and not an ISD. He relied on the following decisions in support of his contentions: • Indian Oil Corporation Ltd. v. CCE., Delhi-II 2014 (35) STR 411 (Tri-Del.) • Mahindra and Mahindra v. Commissioner of Service Tax, Mumbai-II (Final Order No. A/85817/2018....
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....rned Commissioner in para 4.2.1 page 41 of impugned order, while referring to letter dated 19.08.2010 issued by Axis Bank, has observed that no amount of service tax has been paid by appellant for which credit has been availed. We have perused the said letter issued by the Bank which is appearing as Page no. 152 of the appeal book. We find that vide said letter, the Bank has accepted the request of assessee for cancellation of loan facility. However, there is no mention that service tax amount has been refunded back to appellant. In fact, it is specifically stated that the arrangement fee collected by the Bank would not be refunded but may be adjusted when other loan facility is made available to appellant in future. Therefore, we are of th....