9911796707
TMI Blog2018 (10) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... st amended definition of exempted service, the Hon’ble Madras High Court in the case of Ruchika Global Interlinks v. CESTAT, Chennai [2017 (6) TMI 635 - MADRAS HIGH COURT] have held that inclusion of trading in the explanation appended to Rule 2(e) was only clarificatory - thus, the grounds urged by Revenue that the trading was not considered as an exempted service during the disputed period, will not hold good and accordingly, cannot alter the findings recorded in the impugned order. Since, the assessee had reversed the credit attributable to input services used for the trading activities. Since such reversal is not in conformity with sub-rule (3) of Rule 6 of the Cenvat Credit Rules, 2004, we are of the view that the learned Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service, Custom House Agent Service, telephone service, transport of goods service for providing the taxable output services as well as for trading activities undertaken by it. Since the assessee did not maintain separate records for receipt and use of input services in respect of output taxable services provided by it and did not pay the amount as provided under sub-rule (3) of Rule 6 of the Cenvat Credit Rules, 2004, the department proceeded against the assessee for confirmation of Cenvat demand of ₹ 1424.09 lakhs in terms of Rule 6(3)(i) ibid. The show-cause notice issued by the department was adjudicated vide impugned order, wherein CENVAT Credit demand of ₹ 1,05,33,000/- was confirmed along with interest and also penalties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used by the assessee for trading activity, no CENVAT Credit is admissible. Such finding is in conformity with Cenvat statute inasmuch as the statute provides for availment of credit on input services, for utilization towards payment of service tax only for providing the taxable output services. 5. On perusal of both the pre-amended and post amended definition of exempted service contained in Rule 2(e), we find that there is no much of difference between the definitions inasmuch as the explanation added to amended definition with effect from 31.03.2011 has only clarified that exempted services includes trading . In interpreting the provisions of both pre and post amended definition of exempted service, the Hon ble Madras High Court in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itled to take CENVAT Credit of service tax paid on input services, which were used / utilized for providing the output service. Since trading is not at all a taxable service as per the definition under the Finance Act, 1994, there was no occasion for availment of credit for such trading activity. Since the appellant had availed irregular CENVAT Credit on the input services used for trading activity, the intention of the assessee is manifest in defrauding the Government Revenue. Therefore, in our considered view, the adjudged demand confirmed in the impugned order is just and proper and cannot be interfered with by this Tribunal. 7. In view of the foregoing discussion and analysis, we do not find any infirmity in the impugned order passed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
