9911796707
TMI Blog2018 (5) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... r cheques as is equivalent to the amount of interest on such overdraft, cash credit or as the case may be. It is therefore, very clear that the service per se is not exempted, but a part of the taxable value is only exempted - If this be so, then it cannot be said that the service provided by the appellant is exempted. Identical issue decided in the case of M/s Vaidyanath Urban Co-operative Bank Ltd. Versus Commissioner of Central Excise, Aurangabad [2015 (11) TMI 952 - CESTAT MUMBAI], where it was held that the Banking and other Financial Service, which are the output service of the appellant are not fully exempted and accordingly, do not fall under the category of exempt service as defined under Rule 2(e) of the Cenvat Credit Rules, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the scrutiny of the ST - 3 returns filed by the assessee for the period from April 2008 to March 2011, it was observed that they were availing cenvat credit on common input services other tha n those specified in Rule 6(5) of the Cenvat Credit Rules and they have not shown the amount received (paid) towards exempted service in their ST - 3 return. They also have not maintained separate account as required, that they had availed and utilised cenvat credit for payment of service tax, that the assessee has not submitted any intimation regarding their option to follow the procedure set out in sub - rule (3A) of Rule 6 of Cenvat Credit Rules, 2004. In these facts, since the appellant is providing service of lending wherein the interest is exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o application. He further submits that in the same jurisdiction, in the matter of identically placed assessee M/s. Kopergaon People s Co - operative Bank Ltd., Ahmednagar, the Commissioner has dropped the proceedings vide order - in - original No. NSK/EXCUS/002/010/2 015 - 16 dated 23.6.2015. He also placed reliance on the decision in the case of Vaidyanath Urban Co - operative Bank Ltd. order No. A/1218/14/SMB/C - IV dated 14.7.2014. 3. Shri M. Suresh, learned Deputy Commissioner (AR) appearing on behalf of the Revenue, reiterates the findings of the impugned order. He submits that the interest is an exempted service on which no service tax is paid. Therefore, the adjudicating authority has rightly demanded 8% /6% of the value of exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be, discount, from the service tax leviable thereon under section 66 of the said Act, subject to the condition that the said interest amount is shown separately in an invoice, a bill or, as the case may be, a challan issued for this purpose. From the reading of the above notification, it is observed that the notification does not exempt the service as whole whereas the service tax is exempted only to the extent of so much of the value of taxable service provided to a customer in relation to overdraft facility, cash credit facility or discounting of bills, bills of exchange or cheques as is equivalent to the amount of interest on such overdraft, cash credit or as the case may be. It is therefore, very clear that the service per se is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant s case are covered by these two rulings, I remand the matter back to the adjudicating authority with a direction to verify the amount of CENVAT Credit reversed. If the same is found to be short then the appellant may be allowed an opportunity to reverse the amount along with interest. It i s also held that the Banking and other Financial Service, which are the output service of the appellant are not fully exempted and accordingly, do not fall under the category of exempt service as defined under Rule 2(e) of the Cenvat Credit Rules, 2004. 5. As per our above discussion, we hold that the demand confirmed by the adjudicating authority is not sustainable. Hence the impugned order is set aside. Appeal is allowed. (Pronounce ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
