9911796707
TMI Blog2024 (4) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... larly filed Audit Reports along with Balance Sheet and Profit Loss Account before Income Tax department. The appellant has regularly taken Cenvat credit of input service tax in their books of accounts after making payment to the service providers. Such aggregate input service tax, including cess, reflected in the trial balance, being debit balance as on 31st March under the re-grouped account head duties and taxes . Thus, it appeared that due to reflection of input tax credit under the head duties and taxes , has created confusion to the Revenue. Accordingly, appellant has taken service tax credit regularly within the prescribed period from the date of invoice as prescribed under Rule 4 read with Rule 9 of CCR, 2004 - there is no dispute ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... boxes but were trading in such boxes. It further appeared that the appellant was not filing regular returns (ST3) and/or making compliance. Accordingly, summons was issued dt.05.01.2018 to furnish Financial Statements, Profit Loss Statements, Invoices issued, Purchase Invoices, Sales details, etc., for the period 2012-13 to 2017-18. The appellant filed requisite documents vide letter dt.20.01.2018 along with copies of sample Invoices, monthly extract of revenue, copy of the Bank Statements for the period 2013-14 to 2016-17. On scrutiny of the documents, it appeared that appellant was liable to service tax under section 66B in respect of receipts from cable TV subscription charges, advertisement charges, cable TV service and sale of space o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39,34,468/- for payment of output tax. Thus, it appeared to Revenue that appellants have not taken Cenvat credit in the regular course within the prescribed time as permissible under Rule 4 and Rule 9 of CCR and thus, Cenvat credit taken is irregular and also the discharge of service tax liability through Cenvat credit is also irregular. Accordingly, pre-SCN consultation was given to the appellant, wherein the Managing Director P. Srinivas, appeared with their Chartered Accountant and stated that they have got copies of all Cenvat invoices on basis of which they have taken Cenvat credit and utilized the same towards payment of service tax liability. The appellant on further date in pre-SCN consultation meeting filed tabulation/list of entir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce sheet. It was further urged that computerized records are permitted under Circular No.137/26/2007-CX.4 dt.01.01.2008. Further Rule 5 of Service Tax Rules prescribed, inter alia, that records (including computerized records) maintained by the tax payer in accordance with various laws are acceptable. Thus, taking of Cenvat credit and maintenance of proper records by way of ledger accounts, etc., is in accordance with the Rules duly permitted by the Board as aforementioned. Thus, Cenvat credit taken in such electronic records regularly in the ordinary course of business is legal and proper and no adverse inference is called for. It was further urged that once Cenvat credit has been taken legally in the regular course of business on proper i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, i.e., within one year from the date of invoice as permissible under Rule 4 read with Rule 9 of CCR. 8. Learned Counsel takes us through the copies of Profit Loss accounts and balance sheets already filed in the appeal paper book. He also takes us through the schedule of invoices financial year-wise, wherein each input tax invoice with invoice number, date, name of service provider, gross amount and breakup value as to service tax and cess. The appellant has further demonstrated that in their books of accounts maintained on tally software, they have regularly entered the transactions. For example, for the financial year 2013-14, from ledger account of Sun Distribution Services Pvt Ltd (service provider) it is evident that whenever they ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quential benefits. 10. Learned AR for Revenue relies on the findings in the impugned order. 11. Having considered the rival contentions, we find that the appellant has maintained proper books of accounts in the ordinary course of business in electronic form (tally software), which is permissible under the Service Tax Rules read with Board Circular aforementioned. We further find that appellants have regularly got their books of accounts audited by a Chartered Accountant and they have regularly filed Audit Reports along with Balance Sheet and Profit Loss Account before Income Tax department. We further find that the appellant has regularly taken Cenvat credit of input service tax in their books of accounts after making payment to the service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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