Case Law Details
Prayosha Healthcare Pvt Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad)
In Prayosha Healthcare Pvt Ltd v. C.C.E. & S.T.-Vadodara-ii [Excise Appeal No.11102 of 2018 dated September 21, 2021], the current appeal has been filed against Order-in-Appeal OIA-VAD-EXCUS-002-APP-613-2017-18 dated November 21, 2017 (“OIA”) passed by Commissioner (Appeals) of Central Excise, Customs and Service Tax- VADODARA-I (“Respondent”) for rejecting the appeal against Order-in-Original (“OIO”) which rejected the refund claim against reversal of Central Value Added Tax Credit (“CENVAT”) of Prayosha Healthcare Pvt Ltd (“the Appellant”).
The Appellant availed CENVAT Credit of Service Tax paid on sales commission to which the audit officers raised objections holding the same to not be admissible since sales commission is not an input service and the credit availed should be reversed. On the objection, the Appellant reversed the CENVAT Credit however filed a refund claim within a year from date of reversal on the ground that CENVAT credit is admissible on sales commission as per the ruling provided in the judgment M/s. Essar Steel India Ltd. v. C.C.E [2016-TIOL-520-CESTAT-AHM].
OIO- The OIO rejected the refund claim on the ground that sales commission is not input service and also on the ground that the Appellant had reversed the amount without under protest thereby, the Appellant agreed to the audit.
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