RAJ KHOSLA AND CO. PVT. LTD. Vs. CCE

JUDGEMENT

(1.) UNDER the impugned order, the Commissioner has demanded service tax Rs. 6,93,695/ - from the appellant alongwith interest and also imposed a penalty of Rs. 100/ - for every day subject to the amount not exceeding the amount of service tax of Rs. 6,93,695/ - under the provisions of Section 76 of the Finance Act, 1994.

(2.) IN support of their stay application the applicant argued that the only mistake on their part is of not taking the registration of the changed premises from where they had started working. However, they have paid the service tax. They are taking input credit of the service tax paid on the telecom services for using the same for payment of service tax on their output service which falls under category of business auxiliary services. It was explained that they are getting telephone bills of mobile phone in their trade name or employees name and they had correctly taken the credit.

(3.) IT was argued for Revenue that the documents on which credit was taken are not in the name of the applicant, therefore, it cannot be correlated with the business auxiliary services provided by them. Since there is no correlation between input service on which credit was taken and the output service provided by the applicant, therefore, credit of service tax was correctly denied to them.