News

Feb 03, 2014


CENVAT CREDIT OF THE SERVICE TAX

 The manufacturer was paying royalty to its MD. During audit, the Excise dept authorities directed the MD to take registration under Service Tax and discharge the liability of service tax on the royalty income. The MD complied with the same.

 

 

Subsequently, the manufacturer availed the CENVAT credit of the service tax paid on royalty to the MD. The Excise dept disallowed the CENVAT credit and levied duty, interest and penalty on the manufacturer.

 

Hon’ble CESTAT, Mumbai Bench, on the appeal filed by the manufacturer, set aside the order passed by the Chief Commissioner, Central Excise, Mumbai II and held that the order is not sustainable in law.

 

Full judgment is annexed

 

 
Attachment:  1391418139.docx