Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2015 (11) TMI AT This

  • Login
  • Cases Cited
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2015 (11) TMI 1105 - AT - Service Tax


Issues:
1. Availing CENVAT Credit on partially exempted services.
2. Requirement to maintain separate account or pay output tax under Rule 6(3).
3. Confirmation of demand, penalty, and interest.
4. Interpretation of Rule 2(e) of CENVAT Credit Rules, 2004.
5. Applicability of previous rulings by different tribunals.
6. Dispute on the impugned order.
7. Remand of the matter back to the adjudicating authority.

Analysis:

1. The appellant, a cooperative bank, availed CENVAT Credit on duty paid services partially exempted under Notification No. 29/2005-Service Tax. A show-cause notice alleged non-compliance with Rule 6(3) due to availing input tax and partially exempted output services. The Addl. Commissioner confirmed a demand of Rs. 5,53,861 along with penalties. The appellant contended that it reversed the total CENVAT credit for common input services, eliminating any tax liability under Rule 6(3).

2. The appellant referred to Rule 2(e) of CENVAT Credit Rules, defining exempt services. Citing precedents like the case of Nagar Urban Co-operative Bank Ltd., the appellant argued that the retrospective amendment of Rule 6(3) and the reversal of entire common input service credit amount to non-availment of credit. Rulings in similar cases like Jost's Engineering Co. Ltd. and Preeti Logistics Ltd. supported the appellant's stance that Rule 6(3) did not apply.

3. The Assistant Commissioner did not contest the appellant's reliance on previous rulings. The Tribunal noted that the issue was covered by Jost's Engineering and Nagar Urban Co-operative Bank Ltd. The appellant's case aligned with a previous order, leading to a remand for verifying the reversed CENVAT Credit amount and allowing the appellant to rectify any shortfall with interest. The Tribunal clarified that Banking and other Financial Services provided by the appellant did not qualify as fully exempt services under Rule 2(e).

4. The Tribunal allowed the appeal through remand, emphasizing the applicability of previous rulings and the need for the adjudicating authority to reassess the CENVAT Credit reversal amount. The decision highlighted the non-exempt status of the appellant's output services, contrary to the Commissioner's interpretation. The matter was remanded for further verification and compliance with the Tribunal's directions.

This detailed analysis of the legal judgment showcases the issues involved, the arguments presented, and the Tribunal's decision, providing a comprehensive understanding of the case.

 

 

 

 

Quick Updates:Latest Updates