TMI Blog2015 (1) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... est for the amount which was paid from Cenvat credit amount instead of making payment in cash to discharge their service tax liability. - The stand taken by the department which in our opinion is legally correct, would result in a situation where the appellants have to deposit the entire amount of service tax utilized in excess of 20% but they can take back the credit into their account and utilize the same for subsequent period. That being the position, obviously if we require the appellant to pay interest on the excess utilization, it would reduce the complications involved in making payment in cash and taking back the Cenvat credit thereafter and would reduce work for all concerned. In Solar Chemferts Pvt. Ltd. case reported in [2011 (6) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdingly the delay in filing the appeal is condoned. 2. In the case of Sravan Shipping Services, we find that appellant is seeking early hearing because this Tribunal in the Interim Order No. 6/2014, dated 6-1-2014 had given liberty to the Revenue to realize the adjudicated liability during the pendency of stay petition. On this ground the early hearing has been sought. Since the stay application is taken up today, the early hearing application of stay has to be allowed and accordingly the same is considered as disposed of. 3. During the period from 10/2005 to March, 2008, the appellants had paid service tax due from them by utilizing more than 20% of the credit available. Taking a view that appellants were also providing cargo handlin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service rendered by the appellant has to be considered as an exempted service and therefore during the relevant period before us, the appellant could not have utilized Cenvat credit beyond the limits prescribed under the Rules for payment of service tax on taxable service unless they maintained separate accounts in respect of inputs/input services used for providing output services in accordance with provisions of CCR. The relevant provisions of Rule 6 of CCR have been extracted and we are not doing this because only two aspects required to be noted are maintaining of separate accounts and limit for utilization of Cenvat credit. There is no dispute about the quantification. 6. The second submission made by the learned counsel was that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions which are non-existing would lead to consequences which the assessee has no option but to take. Therefore we are unable to consider the submissions regarding bona fide belief or non-applicability of extended period for confirming the demand arising as a result of the activity of the appellant. 8. The next submission that the learned counsel made was that the appellants had huge Cenvat credit in their balance and the activity of the appellant had not resulted in any revenue loss to the Government and the situation is revenue neutral. We cannot go into hypothetical consideration when the position is legally clear. In the absence of detailed information regarding the amount payable every month, the credit available every month, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable as interest because of excess utilization of credit and make payments of the same. This should be done within 12 weeks and on or before 7-10-2014. Thereafter the Commissioner (the adjudicating authority in this case) on receipt of such intimation, would get the payments made by them verified as regards its correctness and submit a report before the Bench when the matter comes up for noting compliance on 11-11-2014. Needless to say a copy of the report to be placed before the Bench will be handed over to the appellants also so that they can respond to such verification report. Final decision as to whether the amount deposited is in accordance with law and fulfils the requirement of payment of interest for hearing the appeals would be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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