9911796707
TMI Blog2018 (6) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... order. 3. The relevant facts that arise for consideration, after filtering out unnecessary details are the appellant assessee herein had taken service tax registration in the year 2002-03 for rendering photography services; they filed ST-3 returns upto September 2002 and from September 2002 onwards they did not file any ST-3 returns and despite reminders, did not pay the service tax liability subsequently. They were issued a show cause notice for non-filing of ST-3 returns for the period 2002-03 to 2005-06; the assessee appellant did not respond to the said notices for non filing of returns. After recording the statement of the proprietrix and on gathering all the details as to the value of taxable services rendered during the period 2002- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Rs. 9913/- towards Cess alongwith interest and equivalent amount of penalty under section 78 of Finance Act. Appellant assessee is aggrieved by the said order on the ground that the first appellate authority should have not imposed any penalties while Revenue is aggrieved by such an order on the ground that the first appellate authority has incorrectly extended the benefit of value of materials which is not in accordance with the notification No. 12/2003 and has not considered the fact that appellant must have claimed depreciation on the machinery which was procured, hence not eligible for the CENVAT credit of the excise duty so paid. 4. Ld. Counsel submits that the CENVAT credit availed on the machinery is evidenced by the document issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant period, for availment of CENVAT credit on capital goods, procedure needs to be followed which has not been followed. 6. On careful consideration of the submissions made, we find that the entire case regarding confirmation of demand is correct, as the services rendered by the appellant are covered under photography services. The Revenue's argument that the first appellate authority has erred in extending the benefit of the reduction of cost of materials as per notification 12/2003 as amended, is on the ground that the appellant assessee had not maintained separate records in details that they have procured and used the material for rendering such services. We find that this objection of the revenue on the findings for reduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16 CESS=6004 2006-07 57,50,370 46,00,295 11,50,075 @12%=1,38,009 CESS=2760 TOTAL Rs.12,17,803/- CESS: Rs.16,710/- As detailed above, I find that the total service tax payable by JDSL is Rs. 12,17,803/- and CESS payable is Rs. 16,710/-." 7. In our considered view, the calculation as recorded by the first appellate authority and the reason as reproduced herein above are as per the acceptable principles of the accountancy norms and has correctly arrived at the decision based on the materials consumed as reported in the balance sheet. 8. As regards the CENVAT credit availed on the machinery procured by the appellant, the first appellate authority has relied upon the duty paid document issued by Kodak India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot include non-availment of CENVAT credit on capital goods. The said conditions are reproduced herein below: 12/2003-Service Tax dated the 20th June, 2003 (G.S.R. 503(E), dated the 20th June, 2003) In the said notification, in the opening paragraph, the following proviso shall be inserted at the end, namely "provided that the said exemption shall apply only in such cases where- (a) No credit of duty paid on such goods and materials sold, has been taken under the provisions of the CENVAT credit Rules, 2004, or (b) Where such credit has been taken by the service provider on such goods and materials, such service provider has paid the amount equal to such credit availed before the sale of such goods and materials. 10. It can be seen from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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