2022 (11) TMI 1146

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....t Hall and restaurant service. The issue involved in this appeal is whether appellant has rightly taken cenvat credit of service tax paid on legal services and the second issue is regarding cenvat credit of service tax paid for 'Works Contract Service'. 2. During the course of audit of the records, it was noticed by Revenue that appellant have availed cenvat credit for Rs.2,11,000/- paid in respect of legal services (under RCM) availed in a matter, which was not related to the appellant company. Further, the appellant had also availed cenvat credit of service tax for Rs.1,50,115/- paid by the appellant under reverse charge on 'Works Contract Service', which appeared to be excluded under the exclusion clause in Rule 2(l) of the Cenvat Cre....

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.... and the situation is Revenue neutral. Thus, consequently, extended period of limitation is not attracted. 3.1 The input service with respect to 'Works Contract Service' has been received in respect of construction of cafe and banquet hall, which has been utilised for rendering of output taxable service under the head hotel accommodation and restaurant as the appellant could not render the output service of Mandap Keeper/ banquet hall and restaurant without construction of the same, the service is directly related for providing of output service and hence the cenvat credit has been rightly taken. Under the main limb of definition of the input service under Rule 2(l), it provides that credit would be admissible in respect of any service u....

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....ous conduct. Further, the situation is Revenue neutral. Admittedly, the transaction has been recorded in the books of accounts and all supporting vouchers are available. 4. The Commissioner (Appeals) by the impugned order-in-appeal was pleased to hold that credit of service tax has been rightly taken in respect of legal services, but as regards input service of 'Work Contract Service' in view of the exclusion clause (a), it was held that the appellant is not entitled to take cenvat credit on the input service of work contract. 5. As regards the ground raised for extended period of limitation, it was held that, had the audit has not taken place it would not have come to notice and accordingly demand of Rs.1,51,115/- was confirmed with ....

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.... and considering the facts and circumstances, I find that the transaction has been properly recorded in the books of accounts maintained in the normal course of business. The dispute has been raised by the Revenue on the basis of audit note, which is based on the transaction recorded in the books of accounts and vouchers maintained by the appellant. Thus, there is no case of any suppression or contumacious conduct, as the Court below itself has found that cenvat credit in respect of legal services has been rightly taken. I further find that taking of cenvat credit by the appellant seems to be available in view of the main clause of Rule 2(l) of Cenvat Credit Rule, which provides for taking cenvat credit for any input service used by the pro....