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2015 (11) TMI 50 - AT - Service TaxCredit availed on exempted services - interest earned by the bank on loans and advances, whether it is exempted service or taxable service - Revenue contends that appellant has not complied with the requirements of Rule 6(3) (ii) and Rule (3A) of Rules, 6 thus liable to pay amount @ 8% of value of exempted goods and he should have paid CENVAT credit amount along with 24% interest - Demand raised under Rule 6(3)(i)is sustainable. Held That:- Board has clarified that prior to 17/3/2012 the value of interest was not be relevant for the reversal of credit under Rule 6(3) of Cenvat credit Rules. Moreover for the banking and financial institution under Rule 6(3) (D) the provision was available for straight 50% reversal of interest. In the present case the disputed value is of interest and Cenvat credit up to 50% of credit was required to be reversed Since appellant paid entire service tax credit availed by them alongwith interest @ 24% he could not be asked to pay 8% of interest amount in terms of Rule 6(3)(ii)and procedure as prescribed under sub rule (3A) of Rule 6 is not relevant because it is relevant only when appellant undertake to pay proportionate credit attributable to exempted service - Demand raised under Rule 6(3)(i) is not sustainable - Decided in favour of assessee.
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