Thursday, 8 May 2014

Mandap keeper services - Appellant availing input service credit and also claiming abatement - when they came to know that CENVAT credit cannot be availed they stopped taking credit



THE DUKES RETREAT LTD Vs CCE (2014-TIOL-730-CESTAT-MUM)

Facts:
The appellant is a resort and providing various services like mandap keeper, hotel rooms, and catering service. The appellant is paying service tax as per Notification no. 21/97 by availing abatement of 40% of taxable amount. As per said Notification, the appellant is not entitled to take input service credit on the services received by them to avail the benefit of abatement as per the Notification. The appellant continued to take input service credit on the services received and availed the benefit of abatement for payment of service tax.


Held:
Appellant should have brought the above to the notice of the department and voluntarily reversed the credit taken earlier - since that was not done, malafide intention is proved - demand not hit by limitation - appeal dismissed

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