Oracle India Pvt Ltd. Vs Commissioner of Central Excise & Service Tax (CESTAT Bangalore)
Book entry/manner of book keeping cannot lead to demand of service tax; (ii) recoupment/booking of costs between two divisions of the same company cannot amount to provision of service as there is no service provider and no service receiver;
We share the recent order passed by the Hon’ble CESTAT Bangalore.
The appellant is a leading software related service provider. Show cause notice proposing demand of service tax on “reimbursement of expenses”, denial of cenvat credit on “debit notes”, denial of input tax credit and demand of interest of credit availed but not utilised was proposed. Demands were confirmed along with interest and penalties. Extended period of limitation was invoked. Hence, appeal.
Hon’ble CESTAT, Bangalore set aside the demand and allowed the appeal.
It held: (i) book entry/manner of book keeping cannot lead to demand of service tax;
(ii) recoupment/booking of costs between two divisions of the same company cannot amount to provision of service as there is no service provider and no service receiver;
(iii) cenvat credit on “debit notes” cannot be denied when all details provided under Rule 9 are mentioned;
(iv) services provided by M/s Deloitte are input services;
