9911796707
TMI Blog2014 (9) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... the period 1-4-2005 to 31-10-2010 and Rs. 99,60,802/- consequent on denial of abatement claimed by the petitioner under Notification No. 1/2006-S.T., dated 1-3-2006, on the singular ground that petitioner had availed Cenvat credit for certain inputs and input services relatable to the output service provided by it and that Notification No. 1/2006-S.T. benefits could not be availed when input credit is availed. Apart from the substantive tax demand, the Authority also assessed the liability to interest and penalties, including a penalty equivalent to the tax liability assessed, under Section 78 of the Finance Act, 1994 (the Act). 2. The petitioner entered into an agreement with IHC on 2-8-1997. Under the terms of the agreement, all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cognized in the adjudication order as well. 3. Article V of the agreement sets out the petitioner's responsibilities and covenants under the agreement. Suffice it to notice that the petitioner should provide internal maintenance; janitorial and security services as specified; guest house facilities, convention centre and conference facilities/back of the house and restaurants at its own cost and expenses, adequate personnel, qualified and experienced for the due discharge of obligations under the agreement. There are other obligations of the petitioner which are intended to effectuate the general purposes of the agreement. 4. Article IX of the agreement deals with sharing of the gross operating receipt, between the parties. Suff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able service. Section 65(19)(vi) enumerates as the taxable service "provision of service on behalf of the client". 8. On a generic and holistic analyses of the agreement dated 2-8-1997 and as noticed by the adjudicating authority as well, the petitioner is the licensee of the premises and is authorized to pursue all the activities specified in the agreement, during the tenure of the agreement. The clause relating to reimbursement by IHC (subject to specified ceiling limits), of the expenses, incurred by the petitioner, is in respect of the activities set out in Annexure II of the agreement. These include repair, maintenance and upkeep; expenses in relation to all carpentry, plumbing, painting, polishing materials and equipment and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r or on behalf of IHC. On this analysis, the petitioner has made out a strong prima facie case, in respect of Service Tax assessed on Business Auxiliary Service. 10. As already noticed, the demand of Rs. 99,69,802/- arises on account of denial of abatement benefit claimed by the petitioner in terms of Notification No. 1/2006-S.T. The ld. Counsel Ms. L. Sharanya has contended that the petitioner had availed Cenvat credit on input and input services, as Mandap Keeper during the period in issue, in a total amount of Rs. 35,79,014/- but this amount was remitted on 20-9-2013 together with the interest thereon amounting to Rs. 35,19,674/-. Relying on the decision of the Supreme Court in Chandrapur Magnet Wires (P) Ltd. v. C.C.E., Nagpur - 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
