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TMI Blog2024 (2) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... en exempted services and services which are excluded from the payment of service tax and argued that the provisions of Rule 6(3) of CENVAT Credit Rules, 2004 are not applicable in the present case on hand. From the definition of exempted services as defined under Rule 2(e) of CENVAT Credit Rules, 2004, it is very clear that exempted services would also include services on which no service tax is leviable under the Act. Since no service tax is leviable on the works contract service rendered by the appellant to Chennai Airport project, these services have been rightly considered as exempted services by the authorities below. Thus, the demand has been rightly confirmed in the impugned order. Accordingly, the demand of Rs.42,81,673/- being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rendered works contract services at Chennai Airport during the year 2009, 2010 and 2011 which are fully exempt from payment of service tax as per the definition under sec. 65(105)(zzzza) of the Finance Act, 1994. As the appellant has availed CENVAT credit on common input services which were used for providing both taxable as well as exempted services, they have to pay an amount equal to 6% of the value of the exempted services as per the provisions of Rule 6(3)(1) of the CENVAT Credit Rules, 2004. As the appellant has not paid the 6% of the value of the exempted services, Show Cause Notice was issued and after due process, the demands were confirmed in the OO and on appeal, the demands confirmed were upheld in the impugned order. 3. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case on hand. 7. We find that the argument of the appellant is not acceptable. The definition of exempted services as defined under Rule 2(e) of CENVAT Credit Rules, 2004 is reproduced below:- exempted services means taxable services which are exempt from the whole of the service tax leviable thereon and includes services on which no service tax is leviable under section 66 of the Finance Act, 1994 From the above definition, it is very clear that exempted services would also include services on which no service tax is leviable under the Act. Since no service tax is leviable on the works contract service rendered by the appellant to Chennai Airport project, these services have been rightly considered as exempted servi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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