2018 (11) TMI 169 – CESTAT HYDERABAD – TMI – CENVAT Credit – period October 2011 and March 2015 – input services – security services for the security guards hired by them – lift maintenance service – service tax paid by the appellant under reverse charge mechanism from the services of chartered accountant filed by them.
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Service tax paid by the appellant under reverse charge mechanism from the services of chartered accountant filed by them – Held that:- There is no legal provision under which such an amount could be paid as service tax or credit of the same would have availed by them – the credit of service tax availed by the appellant on the services of chartered accountant paid wrongly by them under reverse charge mechanism needs to be disallowed.
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CENVAT Credit – Lift maintenance service – security services – Held that:- The appellant hired these services and paid for them along with service tax. Given the nature of these services running their business from others the s
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They also availed the benefit of CENVAT credit under CCR 2004. The dispute in question is with reference to three services on which they have availed CENVAT credit between October 2011 and March 2015. These are (1) Service tax paid on security services for the security guards hired by them (2) service tax paid by them for lift maintenance and (3) service tax paid by the appellant under reverse charge mechanism from the services of chartered accountant filed by them. A show cause notice was issued to the appellant seeking to recover CENVAT credit on account of these services along with interest under section 74 and to impose penalties under sections 77 & 78 of Finance Act. It is the case of the department that as far as the security services are concerned, although the security agency has been hired by the appellant for providing security to their office and the invoices have also been raised in their name along with service tax which they have paid, the benefit of the security serv
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audit. Therefore, the extended period of limitation is invokable under the proviso to Section 73(1) of the Finance Act. Interest is also chargeable under section 75 and penalties are imposable under sections 77 & 78 of Finance Act. 2. After following due process, the original authority confirmed the demands along with interest and imposed penalties as proposed. The appellant filed an appeal before the first appellate authority, who rejected the same and upheld the Order-in-Original. Hence this appeal. 3. Ld. Counsel for the appellant reiterated the above facts of the case and argued that as far as the service tax paid under reverse charge mechanism for the services of the chartered accountant is concerned, he concedes that there is no legal provision under which they could have paid service tax under reverse charge mechanism. However, it is his submission that the chartered accountant was a small operator who had not even registered with Service Tax department and as a matter of a
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es are sister companies which occupied the same complex and have all enjoyed the benefit of these services and therefore the entire amount of service tax paid cannot be attributed to the output services rendered by the appellant. Proportionate credit has been allowed in the Order-in-Original and upheld in the impugned order and there is no infirmity in the impugned order; accordingly appeal may be rejected. 5. I have considered the arguments on both sides and perused the records. As far as the question of service tax paid under reverse charge mechanism irregularly availed by the appellant on the services of chartered accountant are concerned, Ld. Counsel concedes that there is no legal provision under which such an amount could be paid as service tax or credit of the same would have availed by them. I find this reflects the correct legal position and therefore the credit of service tax availed by the appellant on the services of chartered accountant paid wrongly by them under reverse c
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