2026-VIL-736-CESTAT-DEL-ST
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SERVICE TAX CESTAT Cases

Service Tax - Non-reversal of CENVAT Credit on exempted, non-maintenance of separate records – HELD - The appellant was providing both taxable and exempted services, and was not maintaining separate accounts. Hence, the liability to pay 7% of exempted service arise under Rule 6(3) of the Cenvat Credit Rules, 2004 - The demand is upheld for the normal period - RCM on Rent-a-Cab - The appellant is liable to pay service tax under RCM in compliance of Sl. No.7(b) of Notification No. 30/2012 dated 20.06.2012. In view of the legal position, the demand for RCM on rent-a-cab is upheld for the normal period - Cenvat credit taken on Rent-a-Cab, security and group health insurance for employees – HELD - The credit on rent-a-cab and security services is allowed as these were used for business purposes. The credit on group health insurance was also allowed as it fulfills the employer's obligation and supports the business - Claim of Credit basis debit notes - The department denied credit on the ground that debit notes are not valid documents under Rule 9 of the Cenvat Credit Rules, 2004. HELD - As long as the debit notes contained all the requisite information as prescribed under Rule 9(1), they should be considered on par with invoices and credit cannot be denied, especially when the tax has been paid by the provider. There is no evidence led by Revenue to establish that all mandatory details were not available in such debit notes. Hence, such credit taken on debit notes is correct - Inadmissible Credit on WCS - The department denied credit on the ground that the expenditure was on works contract services – HELD – The expenditure was incurred on routine repair work, maintenance and interior renovation work of the cargo terminal site. Following the CBEC Circular and Tribunal decisions, allowed the credit as the expenditure was on repair, renovation and maintenance of the cargo terminal site, which are eligible for Cenvat credit - Remission of license fees - Department treated the refund of license fees as consideration for tolerating an act under Section 66E of the Finance Act, 1994 - HELD - In this instant case, the refund of license fees was on the ground that the same was not due to be paid owing to delay in handing over by DIAL. This is merely a reversal of an earlier cost or expense and not consideration of service - The refund was merely a reversal of an earlier cost or expense and not consideration for any service. The demand on this count is set aside - Interest on advance - HELD - As per Rule 3 of Point of Taxation Rules, 2011, the appellant was liable to pay tax on the date of receipt of such advance. The Tribunal upheld the demand of interest on advance receipts.
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GSTAT Appeal filed wrongly...
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