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

TMI Blog

Home

2015 (7) TMI 1221

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... he cenvat credit attributable to the trading activity i.e. selling of vehicles alongwith interest, the legislative intent behind framing of cenvat credit rules, in my opinion, have been duly complied with. However, since the statement calculating the service tax amount and the interest thereon was submitted for the first time before this Tribunal, I am of the view that the same is required to be verified by the original authority. Appeal allowed by way of remand. - ST/52159/2014 ST. [SM], ST/52146/2014 ST. [SM] - A/54414-54415/2015-SM[BR] - Dated:- 24-7-2015 - S.K. Mohanty, Member (Judicial) Present for the Appellant: Shri Jitendra Singh, Advocate Present for the Respondent: Shri Devender Singh, JCDR ORDER Per: .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ell as for trading of vehicles and reversed the cenvat credit along with interest attributable to the trading of vehicles. During the course of hearing, the ld. Consultant has submitted the statement, showing the Cenvat credit reversal particulars and payment of interest by the appellant. The ld. Consultant further submits that the penalty imposed by the authorities below are not in conformity with the service tax statute inasmuch as non-reversal of cenvat credit at that particular moment of time was not possible and the issue regarding not taking of cenvat credit on the trading activity was contentious one, which was settled by the above decision of the Tribunal subsequently. 4. Per contra, Shri Devender Singh, ld. JCDR submits that sel .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e Tax Credit Rules to cover such situations where an assessee is providing both exempted and taxable services. In cases where an assessee is undertaking activities which cannot be called a service or which cannot be called manufacture, that activity goes out of the purview of both Central Excise Act as well as Finance Act, 1994. Therefore, we have a situation where an assessee would not be eligible to take input Service tax credit on an output which is neither a service nor excisable goods and at the same time there is no provision to cover situations where an assessee is providing a taxable service and is undertaking another activity which is neither a service nor manufacture. In such a situation the only correct legal position appears to .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... (Appeals) in the impugned order has confirmed the penalty under Rule 15 of the Cenvat Credit Rules, 2004. In the said order, though equal amount of penalty imposed by the adjudicating authority has been confirmed, but no findings have been recorded therein showing the involvement of the appellant in any activity in defrauding the Government Revenue. Since the issue involved is interpretation of the statutory provisions, I am of the considered view that the ends of justice will be met, if the penalty is reduced to ₹ 2,000/-. 9. In view of the above, the impugned order is set aside and the matter is remanded to the original authority for verification of the cenvat credit reversal particulars and payment of interest by the appellant. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates