2026 (1) TMI 1073

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....erwise holder of Central Excise Registration for manufacture of excisable goods namely Duplex Paper. The appellant had engaged several sales agent/commission agents for order procurement and sale of their manufactured product. Those service providers have raised the bills for commission charges. The department found that being the service provider that commission agent was required to pay Service Tax on the amount of commission charged for rendering Business Auxiliary Service (BAS) to the appellant, the service being not covered under the Notification No. 30/2012 dated 20th June 2012 (Reverse Charge Mechanism for Service Tax liability). In view of the said observations, department alleged that the appellant had knowingly and deliberately av....

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....proposed to be denied by the Show Cause Notice in May 2018. Since the Show Cause Notice was not issued in the requisite period of one year, the entire demand is hit by the grounds of limitation. The order under challenge is liable to be set aside on this technical ground. 5. While submitting on the merits, ld. Counsel mentions that since the appellant has discharged the 100% service tax liability, the appellant became eligible to avail and utilize the input credit tax/Cenvat Credit on the amount of Service Tax paid by the appellant. Hence the Adjudicating Authorities below have committed an error while denying the availment of credit to the taxpayer/ appellant. The decision in the case of Riya Travel & Tours (I) Pvt. Ltd. Vs. Commissione....

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....nded period. Based on these submissions the appeal is prayed to be dismissed. 7. Having heard the rival contentions of both the parties and perusing record of appeal memo, findings on both the counts are as follows:- (i) Finding with respect to the Show Cause Notice whether it is barred by time or not: It is observed that the period for which the Cenvat Credit availment has been denied is with effect from April 2016 to September 2016. Apparently and admittedly, the appellant was filing regularly Monthly Returns after availing and utilizing the Cenvat Credit. Hence the question of any suppression and mis-representation on part of appellant does not at all arise. It is settled position of law that the extended period of l....

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....ness Auxiliary Service. No doubt, the appellant being the service recipient was not liable to pay the said Service Tax, BAS not being the service mentioned under Notification N0. 30/2012 demanding Tax by the service recipient under Reverse Charge Mechanism. However, it is apparent from the invoices raised by the service provider/commission agent of the appellant that the said service provider has not charged any Service Tax. But the service( BAS) is taxable, the appellant has undertaken the responsibility to pay to the Government exchequer the amount of Service tax on the amount of consideration/ commission paid for the said service. As per the Cenvat Credit Rules anyone who pays the Service Tax is eligible to avail Cenvat Credit of the tax....