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TMI Blog2018 (7) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue neutral one. It is clear that it was an error in the accounting pattern. The short payment of service tax was only due to an error in the accounting pattern for the impugned period. Even if the appellants had paid service tax, they would be eligible for credit and the whole situation would be of no revenue loss. Demand do not sustain - appeal allowed - decided in favor of appellant. - ST/301/2011 - 40972/2018 - Dated:- 1-3-2018 - Ms. Sulekha Beevi C.S. Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri Raghavan Ramabhadran, Advocate for the appellant Shri K. Veerabhadra Reddy, JC (AR) for the Respondent ORDER Per Bench Brief facts are that during the verification of documents at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal. 2. On behalf of the appellant, the I-de Counsel, Shri Raghavan Ramabhadran appeared and argued the matter, The oral and written submissions made by the Ld. Counsel are summarized as under:- a) The appellant during the course of rendering their output service receives services from other mobile operators. In cases where the appellant provides national roaming services to other telecom operators the appellant recovers the appropriate charges along with service tax from such operators. Similarly, other telecom operators also provide national roaming services to the appellant for which the appellant pays the charges as well as service tax to the said operators. The appellant avails Cenvat credit of service tax paid on the national r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y same credit for payment of tax. Moreover, when it is an admitted fact that appellant is eligible for credit, both in the OIO as well as in the SCN for discharge of their output liability, there is no revenue loss to the Govt. as it is a wholly revenue neutral situation. e) The decision of the Hon'ble Tribunal in Commissioner of Central Excise, Rajkot Vs. Reliance Industries Ltd. 2008 (224) ELT 117 (Tri.-Ahmd.) is applicable to the facts of the present case. The issue in the above decision was in respect of eligibility to exemption from duty in respect of inputs captively consumed in the process of manufacture, and whether the said exemption would still be available in respect of the goods used for manufacture of final products whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Month Service Tax Due (including Edu. Cess SHE Cess) Services Tax paid (including Edu. Cess SHE Cess) Difference (including Edu. Cess SHE Cess) August 2007 8,58,004 6,36,184 2,21,820 September 2007 39,57,461 16,53,922 23,03,530 October 2007 4,94,564 3,77,443 1,17,121 November 2007 10,42,883 6,75,410 3,67,473 December 2007 34,22,435 15,97,094 18,25,341 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t debiting the amount in such manner. 5.2 On perusal of records and after hearing the submissions made, we find that the arguments of the Ld. Counsel are not without substance. There is nothing brought out from the records that the appellant has falsified any records or availed wrongful credit by any act of fraud. There is nothing brought forth by the department to show that appellants are not eligible for credit of service tax paid on services received by them from other mobile phone operators. When they are eligible for credit, the entire situation is revenue neutral one. It is clear that it was an error in the accounting pattern. Though the Commissioner (Appeals) has made a vague effort to conclude that appellants have not established ..... X X X X Extracts X X X X X X X X Extracts X X X X
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