TaxTMI 
TaxTMI 
TaxTMI 
2025 (6) TMI 5
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....the Show Cause Notices are as follows : - Description Show Cause No.1 Dated 24.11.2010 Show Cause No.2 Dated: 03.12.2012 Period of Dispute 01.10.2010-31.03.2010 01.04.2010-31.03.2011 Service tax and penalty demanded in Show Cause Notice Cenvat Credit amounting to Rs. 1,50,46,840/- with interest and penalty Cenvat Credit amounting to Rs. 39,19,748/- with interest and penalty. Order-in-Original 19-20(ST)JP/KKS/2021- 22/JC/dated 04.02.2022 (Page 120-162) Service Tax and Penalty confirmed in Order-in- Original Order-in-Appeal 13.06.2023 2. The facts relevant for the adjudication are as follows:- That the appellant was registered for providing the taxable services under various categories ....
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.... Palace Hotel Pvt. Ltd. are not in nature of 'management or business consultancy' service and these have been used for providing both taxable and exempted services whereas the services being provided by M/s IHCL are in the nature of "Business auxiliary services" as observed earlier which do not fall in the category of services listed in sub rule (5) of Rule 6 of Cenvat Credit Rules, 2004. Therefore, M/s Rambagh Palace Hotel Pvt. Ltd. were not entitled to utilize 100% Cenvat Credit of service tax paid on these services. From 01.04.08, as per the provisions of Rule 6(3)(ii) of Cenvat Credit Rules, 2004 they could avail total cenvat credit irrespective of taxable and exempted services but were required to pay an amount equivalent to th....
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....ons including shops in the hotels with approval of managed hotels, supervision and control of the activities of licences, concessionaries, making reasonable repairs, alterations and decoration of managed hotels. 6. Further, it is submitted that the definition of support services was amended w.e.f. 01.05.2011 so as to include "operational or administrative assistance in any manner". However, in the instant appeal, the relevant period is 01.10.2006 to 31.03.2011. Therefore, any attempt to levy Service Tax under the category of business support services would be without jurisdiction and unsustainable in law. 7. The services are undoubtedly management consultancy services falling under Rule 6(5) of Cenvat Credit Rules, 2004. Since, it is a se....
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..... Finally, submitting that extended period has wrongly been invoked while issuing the impugned Show Cause Notices, the order under challenge is prayed to be set aside and appeal is prayed to be allowed. 11. While rebutting these submissions, ld. Departmental Representative at the outset has reiterated the findings arrived at by the adjudicating authorities below. It is mentioned that the plain reading of the contract between the appellant & M/s IHCL, it is evident that the services provided by M/s IHCL are comprehensive and collaborative services for operation, running, maintenance and promotion of the hotel while the owning company only meets the operating expenses. The actual powers for running and operating the hotel are being exercised....
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....vered by the decision of this Bench itself in addition to various other decisions. It has already been observed as under:- "7.1.2 The perusal makes it clear that the provisions of Rule 6 of Cenvat Credit Rules, 2004 are not applicable on 16 services as mentioned in the said provision. One of such services is of Management Consultancy Service defined under Section 65 (105) (r) of Finance Act, 1994. According to the said provision 100% credit on the Management Consultancy Service is specifically allowed even if it is partially used in providing the exempted services. The rule clarifies that the credit taken on Management Consultancy Service is not liable for proportionate reversal under Rule 6 of Cenvat Credit Rules, 2004. We accordingly ho....