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2013 (8) TMI 258 - CESTAT CHENNAINon-Banking Finance Company (NBFC) - Interest - Reversal of CENVAT credit - Rule 6(3) and 6(3A) – Application of the Formula - Assesse provided Taxable Services as well as Exempted Services - Held that:- Assesse had not been able to maintain separate accounts of input services utilized they were required to follow the formula given in rule 6(3A) (c) (ii) of Cenvat Credit Rules, 2004 for final reversal of excess credit taken - Held that:- The ratio of J/(J+K) works out to 47% as against 13.88% worked by assesse and 95.17% worked out by Revenue. Taxability of Service - A service cannot be at the same time considered as taxable service and exempted service- there was no question of considering the above services as exempted services – value of the services was equal to 10% of the interest received on these services and this factor will form part of factor ‘K’ in the calculation - Rest 90% of the interest which represents the true interest on money deployed will not enter in factor ‘J’ or ‘K’ while making the calculation for reversal of credit - only such an approach can be consistent with the rule that interest on loans will not form value of such services. Waiver of Pre-deposit - 45lakhs were ordered to be submitted as pre deposit – after such submission rest of the duty to be waived till the final disposal – decided partly in favor of assesse.
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