2022 (7) TMI 922

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.... of irregular Cenvat credit availed by the Appellant amounting to Rs. 38,79,756/- along with interest under Section 75 of the Finance Act 1994 read with Rule 14 of the Cenvat Credit Rules, 2004 and penalty under Section 78 of the Act read with Rule 15 of the Cenvat Credit Rules, 2004. Also an amount of Rs. 14,83,247/- reversed by the Appellant has been appropriated by the department against the demand of Cenvat credit above. 2. The Revenue is also in appeal against the order supra for the dropping of demand of Rs. 93,80,491/- and additional interest for delayed payment of Service Tax on account of services received from associated enterprises and demand on account of short reversal of Cenvat credit of Rs. 14,08,046/- for bad debt written o....

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....ppellant as well as the Revenue on the amount dropped by the Ld. Adjudicating authority. 5. Heard both sides through video conferencing and perused the Appeal records. 6. As regards the assessee's Appeal assailing the demand of short reversal of Cenvat credit by adding the value of export of services in the total turnover (in the numerator) as per formula given under Rule 6(3A) of the Cenvat Credit Rules, 2004, we are of the considered view that the Ld. Adjudicating authority placing reliance on the CBIC's Circular No. 868/8/2008-CX dated 09/05/2008, wherein it was already clarified that the export of services, without payment of service tax, are not to be treated as exempted services for the purposes of Rule 6(3) of the CCR, 2004. 7. Th....

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....epartment Appeal for demand of additional interest on delayed payment of Service Tax of Rs.93,80,491/- on account of services received from associated enterprises, we find that the lower authority has given a finding that the tow enterprises namely PWC Services BV Netherlands and PWC Global Licencing Services Corporation, Canada cannot be treated as associated enterprises as the same has not been declared by the assessee in their Return of Income tax filed in form 3CEB for FY 2009-10 and hence the payment of Services Tax basis the booking of expense cannot be sustained. We find that the Ld. Adjudicating authority has merely relied on the Income Tax return in form 3CEB without calling for any details as to why the said enterprises should not....

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....ed, the appellant is not required to pay service tax; which does not mean that the appellant has provided exempted/nontaxable service. Rule 3 of the Centvat Credit Rules, 2004 deals with the situation for entitlement of the cenvat credit, which prescribes that a provider of the output service shall be allowed to take cenvat credit of any input service received by the provider of output service on or after 10th day of September, 2004. Admittedly, the services on which the appellant has taken cenvat credit are "input services" in terms of Rule 2(l) of the Cenvat Credit Rules, 2004 and is a provider of output service. Therefore, in terms of Rule 3 of the Cenvat Credit Rules, 2004, we hold that the appellant is entitled to avail cenvat credit o....