Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2015 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (12) TMI 746 - AT - Service TaxWaive of pre deposit - CENVAT Credit - Consulting Engineer Services - Held that:- When a manufacturer is producing dutiable in ‘Consulting Engineer Services’ which the service on which Cenvat credit has been taken in this case is also included in the list of services contained in Rule 6(5) of CCR. Nowhere, there is a finding that appellant has used ‘Consulting Engineer Services’ exclusively for manufacture of exempted goods or providing exempted services. The ground taken by the Revenue is that the appellant has entered into independent contract for supply of goods and services. Therefore, one of the grounds taken is that if the supply of goods is involved, credit proportionate to that extent is not admissible. However, Rule 6(5) of Cenvat Credit Rules, 2004 does not distinguish between the activities undertaken as part of composite contract or independent contracts. So long as an assessee is not undertaking manufacture of dutiable and exempted goods or providing taxable and exempted services, unless the credit is exclusively used for providing exempted services or manufactured goods credit cannot be denied in respect of services listed in Rule 6(5). This being the position, in the absence of any finding that services have been used exclusively in the manufacture of exempted goods or providing exempted services, credit cannot be denied in respect of services listed in Rule 6(5) of Cenvat Credit Rules. - appellant has made out a strong prima facie case for waiver and for stay against realization of dues. - Stay granted.
|