AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2021 (6) TMI 745
X X X X Extracts X X X X
X X X X Extracts X X X X
....gaged in the business of providing airlines operation and is registered with the Service Tax department. The appellant had received services of Back End Operations such as payrolls and finance input services from its related party AirAsia Global Shared Services (AGSS, for short) which is located outside India and hence subjected to service tax under reverse charge mechanism. Based on objections of CERA audit party, appellants were issued a show-cause noticed dt. 15.10.2018 proposing to demand service tax amount of Rs. 39,64,772/- along with interest and penalty. Appellant filed reply to the show-cause notice rebutting the demand on the ground of revenue neutrality citing various previous judgments covering the issue in favour of the appella....
X X X X Extracts X X X X
X X X X Extracts X X X X
....91,847/- only on 24.07.2018. He further submitted that the appellant could not transfer the credit under TRAN1 because they had already filed TRAN1 application on 09/10/2017. He further submitted that the entire exercise is revenue neutral since any tax payable by it would in turn be available to them as cenvat credit within the provisions of CENVAT Credit Rules, 2004. Since the service of VAT, operation such as payroll and finance received by them from their related overseas party would qualify as input service. He further submitted that in the impugned order, the learned Commissioner(Appeals) relied upon by the ratio laid down in Balwant Singh Vs. Jagdish Singh [2010(262) ELT 50 (SC)] and also the decision in the case of International Aut....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al reasoning should have been applied as a whole amount including service tax instead of selective application of the same only for interest and penalty. Learned counsel also submitted that the demand has been confirmed by invoking the extended period of limitation and in the facts and circumstances, the extended period of limitation cannot be invoked because the appellant has not suppressed any material facts with intention to evade payment of service tax. He further submitted that the Department has not established any of the ingredients which are required in order to invoke the extended period of limitation. In support of his submission, he relied upon the following decisions:- i. Pushpam Pharmaceuticals Vs. CCE, Bombay [1995(78) ELT 4....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t of service tax on business support service received from AGSS made on accrual of invoices. Further I find that the show-cause notice was issued on the basis of CERA audit objection by invoking extended period. In the Order-in-Original, the Assistant Commissioner dropped the demand of interest and penalty by accepting the principle of revenue neutrality laid down in various judgements relied upon by the appellant. Both the authorities have not considered the ratio of the decision in the case of Jet Airways (India) Ltd. decided by the Tribunal which was upheld by the Hon'ble Apex Court as cited supra which is clearly applicable in the facts and circumstances of the present case. I also find that the Commissioner(Appeals) in the impugned ord....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... for rendering such output service. 10.3 Secondly, it is nobody's case that the service tax liability on "online information and database access or retrieval service" is paid by the appellant in respect of the tickets issued which are directly linkable to the output services provided by the appellant. 10.4 In our considered view the appellant could have availed Cenvat credit of the service tax paid on reverse charge mechanism as they are liable to pay tax on output service hence, Revenue neutral situation arises wherein appellant pays the tax and takes the credit. We note that the issue as to confirmation of service tax liability arose on the payment made to CRS Company, as decided by majority decisions, in three cases namely British Ai....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l has been followed by this Bench in the case of Jain Irrigation System Ltd. - 2015 (40) S.T.R. 752 wherein the situation of revenue neutrality was claimed on the tax payable under reverse charge mechanism and was held in favour of the assessee. The decision of the CESTAT in Jet Airways (India) Ltd. was upheld by the Hon'ble Apex Court as cited supra. Therefore, this decision is applicable in the present case. Further I find that the extended period of limitation has wrongly been invoked by the Revenue in the present case because the appellant has not concealed any material fact and has been filing the return regularly and paying the service tax under reverse charge mechanism and has been cooperating with the Department by providing variou....