9911796707
TMI Blog2018 (7) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... e works contract with some amount being added as sale of goods and VAT being paid and for the remaining amount, service tax being paid, considering it as the service element of the composite works contract - The appellant had argued earlier that they can prove through agreements, the contracts which they had with their service providers do not fall under the category of works contract. But they have not produced any such agreements and the invoices show that they were works contracts - Thus, appellant have no evidence to show that these invoices do not pertain to works contract. Time limitation - Held that:- The appellant had disclosed the full value of the credit which they have taken in the ER-1, but they have not disclosed the compone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erused the records. 2. The facts of the matter after filtering out unnecessary details are that the appellant is the manufacturer of bulk drugs and had availed CENVAT credit on certain input services, which according to the department were not eligible. They were: (1) Vehicle Insurance Rs.7,836/- (2) Construction related services i.e., false ceiling/partition works Rs.25,152/- (3) Installation services used for ineligible capital goods Rs.1,709/- (4) Works contract services used for construction related works Rs.17,89,798/- Thus, a total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod cannot be invoked. (c) The penal provisions under Rule 52 of CENVAT Credit Rules, 2004 would not apply in this case because there is no element of fraud or wilful mis-statement, etc., (d) Services used for modernisation or renovation or repairs of factory or office, relating to such factory are not excluded from the scope of the input service. 4. They, therefore, prayed that the impugned order may be quashed and set aside. During the only hearing which they have attended on 27.04.2018, they offered to produce the agreements with regard to repairs which they entered into with their service providers to support their case. However they have not produced any such agreements till date. Rule 2(l) of the CENVAT Credit Rules during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (zzzz) of clause (105) of section 65 of the Finance Act, in so far as they relate to a motor vehicle except when used for provision of taxable services for which the credit on motor vehicle is available as capital goods; or Services provided by way of renting of a motor vehicle, in so far as they relate to a motor vehicle which is not a capital goods; or (C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king in the scheme of self assessment, it is the responsibility of the appellant to ensure that the amount of credit which they have taken is as per the eligibility under the CENVAT Credit Rules, 2004. However they have violated Rule 2(l) of CENVAT Credit Rules and have taken credit which they were not entitled to and thereby, evaded the payment of duty to that extent. In view of the above, I find that the extended period of time under Section 11A can be invoked in this case. Consequently, I also find that the fine and interest are also liable to be imposed on the appellant. In conclusion, I find that Order-in-Appeal does not need any interference and I uphold the same. 8. The appeal is rejected. ( Dictated pronounced in the open Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
