9911796707
TMI Blog2022 (11) TMI 1146X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction recorded in the books of accounts and vouchers maintained by the appellant. Thus, there is no case of any suppression or contumacious conduct, as the Court below itself has found that cenvat credit in respect of legal services has been rightly taken. Further taking of cenvat credit by the appellant seems to be available in view of the main clause of Rule 2(l) of Cenvat Credit Rule, which provides for taking cenvat credit for any input service used by the provider of output service in relation to rendering of output services - Admittedly, in the facts of the present case, appellant could not have rendered the output service of hotel, mandap keeper without construction of the cafe and banquet hall. Extended period of limita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit Rules. Show cause notice dated 07.11.2019 was issued proposing to demand the aforementioned amounts by way of disallowance of cenvat credit of Rs.3,61,115/- (Rs.2,11,000/- + Rs.1,50,115/-) alongwith interest and further penalty was also proposed. The show cause notice was adjudicated on contest and the proposed demand was confirmed with interest and also equal amount of penalty under Rule 15(3) of Cenvat Credit Rules read with Section 78 of the Finance Act vide Order-in-original dated 02.07.2020. 3. Being aggrieved, the appellant preferred appeal before the Commissioner (Appeals) inter alia on the ground that the assessing officer was in error in holding that the legal services do not relate to the assessee. It is urged that the di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used by a provider of output service, for providing of output service. There cannot be a more direct nexus between availing of the input service and rendition of output service. Further, Rule 2(l) specifically covers services used in relation to setting up, modernisation, renovation or repair of a factory, premises of provider of output service or office relating to such factory or premises. Admittedly, the services are used for the construction of cafe and banquet hall, which have been used for output taxable services of hotel and restaurant. Further, the appellant has placed reliance on the ruling of this Tribunal in the case of Reliance Gas Transportation Infrastructure Ltd., vs. CST -2016 (45) STR 286. Input services availed by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h interest and penalty. 6. Being aggrieved, the appellant is before this Tribunal. 7. Learned Counsel for the appellant Sh. Mehul Khandelwal inter alia urges that under the admitted facts and circumstances the show cause notice is hit by wrongful invocation of extended period of limitation. He places reliance on the ruling of the Division Bench of this Tribunal in PVR Limited, vide Final Order No. 51625 51626/2021 dated 05.07.2021, as the issue related to liability of service tax on convenience fee charged by PVR Limited from its customer for the facility of online booking of movie tickets under the category of online information and database access retrieval system. This Tribunal observed that even when an assessee has suppress ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovider of output service in relation to rendering of output services. Admittedly, in the facts of the present case, appellant could not have rendered the output service of hotel, mandap keeper without construction of the cafe and banquet hall. Further, the appellant has taken cenvat credit following the precedent ruling of this Tribunal and High Court referred hereinabove. In this view of the matter, I hold that extended period of limitation is not available to Revenue. 10. Accordingly, in view of my findings as above, I allow this appeal setting aside the impugned order. The appellant is entitled to consequential relief, in accordance with law. (Operative part of the order pronounced in open Court). - - TaxTMI - TMITax - Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
