Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 750 - AT - Service TaxDenial of CENVAT Credit - Distribution of service tax through ISD - Trading services - Held that:- it is the appellant manufacturer who has taken the credit and therefore, the recovery of wrongly taken credit has to be effected from him. The distribution of service tax through ISD is only a facility provided under the Rules and does not deal with recovery. Therefore, the credit, if taken wrongly, has to be recovered from the person who has taken credit. Whether trading could be considered as an exempted service prior to 1-4-2011 in view of the explanation inserted in Rule 2(e) of CCR, 2004, and if credit is not admissible, what is the methodology that should be adopted for quantification of ineligible input service tax attributable to trading activities - Held that:- categorically that prior to 01/04/2011 trading cannot be considered as an exempted service. In the said decision, it was held categorically that apportionment of input service tax credit on common input services used for trading activity and manufacturing activity could be done based on the ratio of their respective turnover. In view of this decision, we are of the considered view that the demand for reversal of input service tax credit in the present case adopting the ratio of the turnover of trading activity and manufacturing activity, in the impugned order, cannot be faulted. Waiver of pre deposit - Held that:- when there is no prima facie case and financial hardship is not pleaded, the interest of revenue need to be protected - Conditional stay granted.
|