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TMI Blog2021 (11) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... e notice dated 2.9.2016 was issued to the appellant for denying cenvat credit to the extent of ₹ 1,37,01,095/- . On similar grounds, the said show cause notice was adjudicated by the Addl. Commissioner vide order-in-original dated 26.03.2018, wherein similar demand with respect to the goods deemed to be supplied in the course of works contract service, was dropped. The said order has been accepted by the Department, as no further appeal has been filed. The appeal is allowed. - Service Tax Misc. Application No.50407 of 2021 (on behalf of the appellant) in Service Tax Appeal No.50052 of 2020 - FINAL ORDER No. 51927/2021 - Dated:- 27-10-2021 - MR. ANIL CHOUDHARY, MEMBER (JUDICIAL) Shri K.M. Menon with Ms. Parul Sachdeva, Adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertaining to period April, 2015 to March, 2016), amounting to ₹ 20,40,012/- including cess. The cenvat credit of service tax paid on common input services, is inadmissible on the basis of - ratio of the 10% value of trading goods to the total turnover or (i.e. 10% value of trading goods/exempted goods and value of taxable services ), which appeared payable along with interest under Rule 6(3)(d) of Cenvat Credit Rules, 2004. 4. Accordingly, a show cause notice bearing F.No.V(ST)31/SCN-Deify Inf/RPR/2017-18/1316 dated 25.07.2018 was issued to the appellant, demanding an amount of ₹ 20,40,012/- in terms of provision of Rule 14 of Cenvat Credit Rules, 2004 read with Section 73 of the Finance Act, 1994, along with interest read w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecifies trading of goods in the negative list. Thus, no service tax is leviable on the trading of goods under Section 66 B of the Act. 9. Since the appellant is not maintaining separate books of accounts, it has opted for reversal under Rule 6(3)(ii) of CCR read with Rule 6 (3A). Rule 6(3A) (c)(iii) specifies formula to be adopted for making reversal of cenvat credit on common input services. As per the formula, the numerator is the value of the exempted services provided during the financial year, at 10% of the cost of the goods traded or profit on trading (whichever is higher), and the denominator is taken as the value of the exempted services provided plus the value of the dutiable goods cleared during the financial year. The resultan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in execution of the works contract, is erroneous and wrong. Accordingly, I hold that show cause notice is mis-conceived. I further take notice that in the earlier period, identical show cause notice dated 2.9.2016 was issued to the appellant for denying cenvat credit to the extent of ₹ 1,37,01,095/- . On similar grounds, the said show cause notice was adjudicated by the Addl. Commissioner vide order-in-original dated 26.03.2018, wherein similar demand with respect to the goods deemed to be supplied in the course of works contract service, was dropped. The said order has been accepted by the Department, as no further appeal has been filed. 14. Thus, the impugned order is set aside. The appeal is allowed. The appellant shall be enti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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