2024 (3) TMI 228 - AT - Service Tax

Benefit of N/N. 12/2003-S.T. dated 20.06.2003 - CENVAT Credit reversed - repair and maintenance of LPG Gas Cylinders during the period from July 2003 to March 2005 - HELD THAT - In this case, the appellant has already reversed the CENVAT Credit attributable to inputs used for their activity of repair and maintenance, namely, paints, rings, etc., on 03rd October, 2006. In these circumstances, the Show Cause Notice was not required to be issued to the appellant, and by reversal of CENVAT Credit, the appellant is entitled to claim the benefit of Notification No. 12/2003-S.T. dated 20.06.2003. The impugned demands are not sustainable against the appellant. Accordingly, the same are set aside - the appeal is allowed.

Summary

Issues involved:
The appeal against the demand of Service Tax under Section 73(1) of the Finance Act, 1994 by denying the benefit of Notification No. 12/2003-S.T. dated 20.06.2003.

Summary:
The appellant, engaged in the manufacture, repair, and maintenance of LPG Gas Cylinders, faced a demand for Service Tax for the repair and maintenance activities from July 2003 to March 2005. The appellant had availed CENVAT Credit on inputs used for repair and maintenance, but a Show Cause Notice was issued proposing to deny the benefit of the aforementioned notification. The appellant had already reversed the CENVAT Credit attributable to inputs used for repair and maintenance before the issuance of the Show Cause Notice. The Tribunal found that the appellant was entitled to claim the benefit of the notification after the reversal of CENVAT Credit. Consequently, the impugned demands were deemed unsustainable, and the appeal was allowed with any consequential relief.

In conclusion, the Tribunal ruled in favor of the appellant, setting aside the demand for Service Tax and allowing the appeal with any necessary consequential relief.