9911796707
TMI Blog2010 (1) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... paying the Service tax they were required to utilize only 20% of the credit available for payment of Service tax on the input service in accordance with the provisions of Rule 6(3)(c) of Cenvat Credit Rules, 2004. Penalty equal to the Service tax demanded interest on the Service tax demanded have been imposed. Held that- verification not made as to statement of appellant that credit not taken on all ten common services and separate accounts not required to be maintained. Detailed discussion on applicability of Rule 6 of Cenvat Credit Rule 2004 absent in impugned order. Pre-deposit waived. Matter remanded to Commissioner for fresh adjudication. - ST/298/2009 - A/128/2010-WZB/AHD - Dated:- 6-1-2010 - S/Shri B.S.V. Murthy, Member (T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken the credit in respect of these services. He submits that once they have not taken credit on the common services, the question of maintenance of separate records does not arise. He also submits that according to the calculations made by them only in respect of one month there would be excess payment of Service tax from the Cenvat credit account if the calculation is made on the basis of total amount payable on all the five services provided by them and total amount of Cenvat credit utilized by them during the month. He submits that the Commissioner (Appeals), observation that the calculation has to be made in respect of each service is not correct. He also submits that even if calculation is made on that basis, there may not be any diffe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advocate that once a service tax paid on input services has not been taken at all, the provisions of Rule 6(3)(c) of Cenvat Credit Rules would not be applicable. However, we find that even though the appellants submitted a list of ten services and the credit available thereon which was not taken, no verification has been conducted to check whether the claim made by the appellant that they have not taken Cenvat credit in respect of the common services and therefore they would not be required to maintain separate accounts is correct. In fact we are not able to agree with the Commissioner's view that even if Cenvat credit on common input services is not taken, appellant is required to maintain separate accounts. For ready reference we re-produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviding any of the exempted services, the demand cannot be sustained. For this purpose there is a need for verification of the claim made by the appellants that they have not taken credit of Service tax paid on all the common input services and their number is only ten. Even though all the other points are arguable, since we find that if the claim made by the appellants in respect of these ten services is correct and in such a case the whole case made out by the department would not be sustainable, it would be appropriate to send the matter back to the Commissioner so that he can get this verified properly and thereafter consider the matter afresh. We would not like to go into all other issues at this stage since we have concluded that on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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