9911796707
TMI Blog2010 (12) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... nd service tax paid on input services, under Cenvat Credit Rules, 2004. The appellants received certain taxable services from some service providers in August, 2004 and September, 2004 and total service tax involved was Rs. 67,610/-. The invoices have been issued by the service providers on 6-8-2004 and 8-9-2004. 1.2 Prior to 10-9-2004, there were two sets of Rules for Cenvat Credit and Service Tax Credit - Cenvat Credit Rules, 2002 providing for Cenvat Credit of central excise duty/Additional Customs duty, paid on inputs and capital goods used in or in relation to the manufacture of finished products and Service Tax Credit Rules, 2002 providing for credit of service tax paid on inputs services used in or in relation to providing taxa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , took re-credit of the same on 1-10-2006 and they also informed the department about this. The Department, however, issued a show cause notice dated 27-9-2007 seeking recovery of this credit along with interest and also imposition of penalty. The show cause notice was issued on the basis that since the services had been received prior to 10-9-2004, the appellants were not entitled for the credit. The show cause notice was adjudicated by the Asstt. Commissioner vide order-in-original dated 29-2-2008 by which credit demand was confirmed along with interest and besides this, penalty equal to wrongly taken service tax credit was imposed under Rule 15 of the Cenvat Credit Rules, 2004. On appeal to the Commissioner (Appeals) against the Asstt. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it Rules, 2002 as they existed prior to 10-9-2004 and remaining unutilised on that day, shall be allowed as cenvat credit to such manufacturer or output service provider under these rules, that the Department's contention that since input services were received prior to 10-9-2004, the credit would not be available even if the service tax has been paid after 10-9-2004, is not correct, that since in this case, there is no deliberate intention or suppression of fact is involved and since the appellants had intimated to the department about taking of the credit vide their letter dated 2-11-2006, penalty under Rule 15(2)of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 is not called for and that in view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s after 10-9-2004 as the complete payment had been received only after 10-9-2004. Though sub-rule (7) of Rule 4 of the Cenvat Credit Rules, 2004 provides that the service tax credit to a manufacturer or output service provider would be available on the basis of the invoices issued by the service provider only on or after the day on which the payment is made to the service provider of the value of the input services, Rule 3(1) provides that a manufacturer of final products or a provider of taxable services, shall be eligible for the credit of service tax paid under Section 66 of Finance Act, 1994 on any input services received on or after 10-9-2004. The service tax credit in respect of service received prior to 10-9-2004 would be governed on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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