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TMI Blog2017 (2) TMI 778X X X X Extracts X X X X X X X X Extracts X X X X ..... importer may use or keep imported goods and, not having taken credit, may endorse the bill of entry to another person for availment of credit. We would thereby be legalising trafficking in CENVAT credit if the contention of appellant is accepted because of the accounting perfection that it portrays. That there is no loss to public exchequer as credit is an entitlement. Credit is an entitlement only to the extent the output is transacted in a normal commercial engagement. The specific reference to lease, hire-purchase or loan of capital goods appear to be intended to delink the goods from ownership without detracting from the documentary pre-requisites. That, in view of the primary condition of eligibility for CENVAT credit, is the scope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posed penalty under rule 15(3) of CENVAT Credit Rules, 2004 and under section 76 of Finance Act, 1994. By order-in-appeal no. MUM-SVTAX-002-APP-93-15-16 dated 15 th January 2016, Commissioner of Service Tax -II (Appeals), save for reduction of penalty under rule 15(3) to ₹ 1,00,000/- upheld the order of original authority. Hence this appeal. 3. It is common ground that the duty liability had been discharged on the imported goods, that the capital goods had been brought to the premises of appellant and that the goods were used for rendering of technical testing and analysis service. 4. Heard Learned Chartered Accountant appearing for appellant and Learned Authorized Representative. The thrust of the appeal is that the scheme o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or discharge of the two distinct levies - that on manufacture and that on rendering of services. The former is a tax on goods and the latter on intangibles. In the nature of the taxed object, discharge of excise duty is not predicated on the identity of the assessee save that an assessee is required for discharge of liability. The identity of the person liable to duty has no bearing at all the taxable event. 7. Services, however, are on a different footing. Prior to July 2012, rendering of service did not carry with it liability to tax unless such service was specified as taxable under section 65 (105) of Finance Act, 1994. Taxability under the charging section was predicated upon three essential factors: an activity, a provider and a re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The title to goods transfers only with bill of lading; that, however, is also a valid document of title only till the consignee or notify party assumes custody of the imported goods. With clearance having been effected, the goods can no longer qualify as imported goods and, hence, any subsequent transaction entered into by the importer is a domestic transfer without the privilege of recourse to the bill of entry for any purpose, including availment of CENVAT credit. The alternative proposition is, indeed, dangerous; an importer may use or keep imported goods and, not having taken credit, may endorse the bill of entry to another person for availment of credit. We would thereby be legalising trafficking in CENVAT credit if the contention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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