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2014 (8) TMI 858 - AT - Service TaxBenefit of Cenvat Credit Scheme - utilization of excess Cenvat credit - Held that:- expression 'exempted services' covers not only the services taxable under Section 66 of the Act, which are fully exempt from service tax by some exemption notification issued under Section 93, but also those services which are not taxable under Section 66 of the Act. In view of the wordings of Rule 2(e) of Cenvat Credit Rules, 2004, the services, in question, have to be treated as 'exempted services'. Accordingly, the Tribunal has held that inasmuch as the assessee was providing taxable as also 'exempted services' of Interconnection usage service they are entitled to use 20% of the Cenvat credit of service tax availed in respect of inputs and input services. Extended period of limitation - Held that:- Even though prior to the period March 2007, the inter-connectivity services were not taxable but the same have to be treated as 'exempted services', in the light of definition given in Rule 2(e) of the Cenvat credit Rules, 2004, and the provisions of Rule 6(3)(c) of Cenvat credit Rules, 2004 would get attracted. demand in the present case relates to the period 01.10.05 to 31.05.07 and the show cause notice stands issued on 05.03.09, by invocation of the longer period of limitation. In the decision of the Idea Cellular [2009 (2) TMI 91 - CESTAT NEW DELHI], relied upon by the revenue the benefit of limitation was extended to the assessee, on the ground that the dispute in the case related to a bonafide interpretation of law and the Department can not claim that they were not aware that the appellant were providing non-taxable services of inter-connectivity. As such in view of the same order, which stands adopted for holding against the assessee, on merits, the benefit of limitation is required to be extended. In as much as, the demand in the present appeal is wholly barred by limitation - Decided in favour of assessee.
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