9911796707
TMI Blog2018 (10) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1956, engaged in the running of a chain of reputed five star hotels and resorts across the state of Kerala. During the relevant period, the appellants were providing only taxable services and with respect to accommodation and restaurant service, the appellants were discharging service tax on abated value as per the Notification No.26/2012 dt. 20/06/2012. The appellants were issued a show-cause notice dt. 17/04/2015 alleging that the appellants are providing exempted service of accommodation service and restaurant service and being providers of taxable and non-taxable services are in violation of the CENVAT Credit Rules by not maintaining separate accounts under Rule 6(3) of the CENVAT Credit Rules. In reply to the show-cause notice, app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , shall be taken; but shall not include a service - (a) which is exported in terms of rule 6A of the Service Tax Rues, 1994; 4.2. The learned counsel also submitted that perusal of the definition of exempted services clearly shows that where part of the value of service has been exempted with a condition that CENVAT credit on inputs and input services has not been availed, the same would be covered under the definition of exempted services as defined under Rule 2(e) of the CCR. He also submitted that in the present case, the appellants have availed the benefit of abatement with respect to accommodation service as per Sl.No.6 of the Notification No.26/2012 dt. 20/06/2012 and as per the said entry, 40% of the value of accommodation se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 66B of the Act shall be treated as exempted service; iii. Services where part of it has been exempted by way of abatement notification with a condition that no CENVAT credit shall be availed on inputs and input services used in providing such services. However, I find that appellants are only availing the benefit of abatement in respect of the accommodation service as per Notification No.26/2012 dt. 20/06/2012 and as per the said Notification, 40% of the value of the accommodation service has been exempted from the levy of service tax on the condition that the CENVAT credit on inputs and capital goods has not been taken. In the present case, the appellant has not taken any CENVAT credit on inputs and capital goods. Further I find that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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