TaxTMI 
TaxTMI 
2025 (6) TMI 1091
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....- has been demanded along with interest. Penalties have also been imposed. The facts in brief culminating into the said order are as follows: 1.1 M/s. M.P. Audyogik Kendra Vikas Nigam (Indore) Ltd. (MPAKVN), the appellant, is holding service tax registration being engaged in providing taxable service under the category of Renting of Immovable Properties, Legal Consultancy Services, Manpower Supply Services and Rent-a-cab Services. During the course of audit of the appellants for the period 2012-13 to 2015-16, department observed that the appellant had taken Cenvat credit of Rs.20,44,971/- as opening balance in the month of October 2014 while the closing balance in the month of September 2014 was nil. Department has alleged that the said am....
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....tently mentioned as nil. However, the Cenvat credit of Rs.20,44,971/- is availed based on the invoices. The list of all those invoices were duly provided to the adjudicating authority and the copy of those invoices are readily available with the appellant. However, the adjudicating authority has miserably ignored the said submission, thus the Cenvat credit has wrongly been disallowed. 3.1 While submitting with respect to the demand of service tax of Rs.69,88,709/-, learned counsel submitted that the amount has wrongly alleged to be the amount of consideration for rendering the declared service. Learned Chartered Accountant has mentioned that the issue is no more res integra. It has already been settled that forfeited amount or the amount o....
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....vailment and utilization of Cenvat Credit in contravention of Rule 3(4) of Cenvat Credit Rules, 2004. (ii) Non-payment of service tax on declared service under Section 66E(e) of Finance Act, 1994 on forfeiture of deposits on account of penalty/fine and others. 6. Issue wise findings are as follows: 6.1 Issue No. 1 6.1.1 Cenvat credit of Rs.20,44,971/- is alleged to have been wrongly availed for want of compliance of Rule 9(6) of Cenvat Credit Rules, 2004. It has been brought to the notice that the appellant had all requisite documents in his possession to show that the said Cenvat credit has been availed and utilized well in conformity of the said rules. He also mentioned that the details of the said record, the list thereof were place....
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....orfeiture amounts, cancellation charges etc. stands settled by various pronouncements wherein it has consistently been held that the said amounts recovered as charges for breach or noncompliance of contractual terms and conditions cannot be construed as 'consideration' for 'refraining or tolerating an act' and were thus not leviable on Service Tax in terms of Section 66E(e) of the Finance Act, 1994. Reliance in this regard is placed on the following decisions : (i) M/s. K.N. Food Industries Pvt. Ltd. v. Commissioner of CGST & Central Excise, Kanpur [2019-VIL-731-CESTAT-ALH-ST] wherein it was held that if a contract provides for an eventuality which is uncertain and also remedy if that eventuality occurs, such charges made....
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....) Commissioner of Service Tax v. M/s. Bhayana Builders (P.) Ltd. [2018 (2) TMI 1325] = 2018 (10) G.S.T.L. 118 = [2018] 91 taxmann.com 109/66 GST 320 wherein the Apex Court observed that any amount charged which has no nexus with the taxable service and is not a consideration for the service provided does not become part of the value which is taxable under the Finance Act. (b) Union of India v. International Consultants and Technocrats [2018 (10) G.S.T.L. 401 (S.C.)] - since Service Tax is with reference to the value of service, as a necessary corollary, it is the value of the services which are actually rendered, the value whereof is to be ascertained for the purpose of calculating the Service Tax payable thereupon. (v) M/s. M.P. Poor....