𝗖𝗘𝗦𝗧𝗔𝗧 𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗔𝗱𝘃𝗮𝗻𝗰𝗲𝘀 𝗮𝗻𝗱 𝗖𝗘𝗡𝗩𝗔𝗧 𝗖𝗿𝗲𝗱𝗶𝘁 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Advances adjusted with fees cannot be treated as security deposits and are liable to service tax. CENVAT credit on materials used for taxable services is rightly availed."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Applied Solar Technologies (India) Pvt. Ltd. 𝗜𝘀𝘀𝘂𝗲: Whether the appellant is liable for service tax on advances and irregular CENVAT credit availed. 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: Hybrid solar power provider faced a show-cause notice for unpaid service tax on advances and alleged irregular CENVAT credit claims.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal held that advances adjusted against future fees are taxable, while CENVAT credit on materials for taxable services was correctly availed. The appeal was partly allowed, upholding CENVAT credit eligibility and addressing the service tax liability on advances.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Applied Solar Technologies (India) Pvt. Ltd. vs. Commissioner, CGST (Audit-II) 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 20 January 2023 📜 This ruling clarifies the treatment of advances and eligibility of CENVAT credit for businesses.