𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗖𝗘𝗡𝗩𝗔𝗧 𝗖𝗿𝗲𝗱𝗶𝘁 𝗮𝗻𝗱 𝗡𝗼𝗻-𝗧𝗮𝘅𝗮𝗯𝗹𝗲 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 📢 The Tribunal held: "Once no service was rendered in the USA that is taxable under the Finance Act, all charges, including demand, interest, or penalties, must fail."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s. Cognizant Technology Solutions India Private Limited 𝗜𝘀𝘀𝘂𝗲: Whether the appellant is required to reverse CENVAT credit on services alleged to be exempt?

𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant, a provider of IT and business support services, availed CENVAT credit for input services and used it to pay service tax on output services. A show-cause notice was issued, alleging that 'On-site Development of Software' services provided to their branch in the USA were exempt, and thus CENVAT credit was ineligible. credit on services alleged to be exempt?

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal observed: In the appellant's own case, no taxable service was rendered in the USA under the Finance Act, as noted in Final Order No. 40529/2023. Since no taxable service was provided, the demand, interest, and penalties under the Finance Act were unsustainable. The appeal was allowed, and all charges were set aside.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. Cognizant Technology Solutions India Private Limited vs. The Principal Commissioner of GST & Central Excise, Chennai North GST Commissionerate 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗣𝗣𝗘𝗔𝗟 𝗡𝗢. 40385 of 2019 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 12 January 2024

📜 This ruling clarifies that no CENVAT credit reversal is required when no taxable service is rendered under the Finance Act.