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2013 (11) TMI 1309 - AT - Service TaxService tax liability - Banking and other Financial services - Renting of immovable property service - Denial of CENVAT Credit on the ‘input services’ - NOTIFICATION NO.29/2004-ST, DATED 22.9.2004 - Held that:- prima facie exemption on the amount of interest is limited to (a) over-draft facility and (b) cash credit facility. At this juncture, we are not able to appreciate the argument of the Ld. Chartered Accountant that the interest earned on discounting of bills, bills of exchanges or cheques are also included in the purview of the said exemption Notification. Regarding the wrong availment of CENVAT Credit on input services that had been utilized in providing exempted services, in our opinion, are not eligible to the CENVAT Credit in view of the specific provision contained in Rule 6(1) of CENVAT Credit Rules. If the Applicant could not able to maintain separate account of the input services that were used in providing taxable services and exempted services, then consequences, are accordingly, mentioned under subsequent sub-rules. We do not find prima facie any apparent error in the computation of CENVAT Credit demand arrived in Annexure (C) to the show cause notice which has been calculated as per the formula prescribed under sub-rule 3A of Rule 6 of CENVAT Credit Rules, 2004 - Hence, the demand is not entirely barred by limitation. Besides, the issue of limitation is a mixed question of facts and law and would be examined at the time of disposal of the Appeal after appreciating the evidences on record. No financial hardship is pleaded - Applicant could not able to make out a prima facie case for total waiver of pre-deposit of dues adjudged - Partial stay granted.
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