TaxTMI 
TaxTMI 
2024 (1) TMI 886
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....e services namely Rent-a-Cab Scheme Operator service, Security/Detective Agency service, Manpower Recruitment/Supply service, Business Auxiliary service, Transport of Goods by Road service/Goods Transport Agency service, Sponsorship service, Business Support Service, Works Contract service, Information Technology Software service, Legal Consultancy service and other taxable services, i.e., other than 119 services listed in list of services for filing ST-3 returns. The Appellant was availing CENVAT credit under the CENVAT Credit Rules, 2004 in respect of service tax paid on input services received. Records and Books of Accounts of the Appellant for the period from April, 2013 to June, 2017 were subjected to audit by the Officers of Central Tax, Audit Commissionerate, Noida in the month of June, 2018. It was noticed by the Officers during the audit that the Appellant had not paid service tax on some services namely on rent-a-cab service, legal consultancy service under reverse charge mechanism under Notification No.30/12-ST dated 20.06.12. The Appellant had purchased software licence and professional services from Amazon Web Services and Advent Software, respectively, which wer....
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.... the Appellant was availing Cenvat credit of service tax paid on input services. It shows that if service tax had been paid on said input services by the Appellant under reverse charge mechanism, he would have availed Cenvat credit of such service tax and finally took the refund of that amount being an SEZ unit. Therefore, it is a case of revenue neutrality. The Appellant referred to the order of the Ld. Commissioner, Central Goods and Services Tax (Appeals), Meerut on the same issue in the matter of M/s Weavetex Overseas, a hundred percent Export Oriented Unit. The Appellate Authority, vide Order-in-Appeal No.MRT/EXCUS/000/APPL-MRT/38/2019-20 dated 22/05/2019, set aside the demand raised under reverse charge mechanism on the ground that even if the tax was paid by the assessee under reverse charge, the same would have ultimately been refunded back, the assessee being an 100% export unit. In support of his contention, the Appellant also referred to the following decisions:- i. Jet Airways India Ltd. vs. CST, Mumbai - 2016-TIOL-2072-CESTAT-MUM. ii. National Building Construction Corporation Ltd v. CCE & ST (2011) 23 STR 593 (Tri. Kol). iii. Ashirwad FoundariesPvt. Ltd. Vs. C....
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.... electronic form through computer network. Therefore, it was submitted that the cloud service provided by M/s Amazon Web Service Inc. to the appellant was squarely covered under the definition of 'Online information and database retrieval services.' Amended definition merely mentions cloud services as an example of services covered under the definition and nowhere provides a decisive vision that the definition has been amended in anyways to include cloud services specifically. It was contended that the demand of service tax on cloud services may set aside. 6. On the issue of demand of service tax on purchase of licence from Advent Software, the Ld. Counsel for the Appellant submitted that no findings were given by the Ld. Commissioner (Appeals) while confirming demand on said service. It was simply held that said service was within ambit of 'software service'. It was stated that licence was obtained from M/s Advent Software Inc., Philadelphia, U.S.A. for use of its product 'Geneva' for on s the period from April 2013 to June 2017. "Geneva" is a product of M/s Advent Software Inc. which gives real time insight for complex strategies. Geneva is global portfolio management and accoun....
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....le under reverse charge mechanism. Legal services and rent-a-cab services were specified services under Notification No.30/12-ST dated 20.06.12 on which service tax was payable by the service recipient under reverse charge mechanism. Clouding services and Authorisation for use of Geneva product were provided by entities located abroad, i.e., non-taxable area. So, service tax on said services was payable by service recipient under reverse charge mechanism. We further find that the Appellant was a registered person under service tax and was eligible for taking Cenvat credit paid on input services. It is a fact that all said services were input services for the Appellant. Whatever tax was paid on said services, the Appellant would have taken back as Cenvat credit. Thus there was no gain to the government exchequer in that case. It is a case of revenue neutrality. We find that the issue of the applicability of revenue neutrality in the circumstances of charging service tax under reverse charge mechanism has been settled in catena of judgments. In the case of Jet Airways India Ltd [2016-TIOL-2072-CESTAT-MUM], this Tribunal has considered the issue of revenue neutrality where service ta....