Radiant Advertising And Marketing (India) Pvt. Ltd. Vs Commissioner of CGST & Central Excise (CESTAT Kolkata)
In Radiant Advertising And Marketing (India) Pvt. Ltd. Vs Commissioner of CGST & Central Excise, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata examined the validity of service tax demand and disallowance of CENVAT credit confirmed against the appellant. The appellant, engaged in advertising and marketing services, was subjected to proceedings on two issues: alleged non-payment of service tax of ₹1,83,666 on advances received during FY 2008–09 to 2011–12, and alleged wrongful availment of CENVAT credit amounting to ₹4,06,138. The adjudicating authority had confirmed total demand of ₹6,25,706 along with interest and penalties, which was upheld by the Commissioner (Appeals).
Regarding advances, the appellant explained that out of ₹10,98,587 received, a portion was adjusted against services rendered, some related to goods on which VAT was paid, some amounts were refunded, and some were written off. The Tribunal observed that advances were adjusted and service tax was paid subsequently, with only a small portion written off. It held that at best, tax liability could arise only on 15% of the written-off amount. However, even this limited demand was held unsustainable on the ground of limitation.
