Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 768 - AT - Service TaxCenvat Credit - Allocation of input services to the concerned department as earned by the Table-C department - appellant provides taxable service as well as exempted service - appellant's submission is that when the records clearly demarcated the extent of credit allocable to departments in Table-A and Table-B that ought to have been verified by the Revenue before questioning. But that was not done - Held that:- Once the conduct of the appellant in the manner indicated by the material facts stated above is very clear because of the proportionality of the credits allocated, due to its division of the department and maintenance of records, there cannot be any presumption by Revenue that the appellant's case falls under Rule 6 (3) of CCR 2004. It is also apparent from record that the order passed by the Authority below is unreasonable for the reason that as against credit of ₹ 6,66,423/- allocated to the department in Table-B which provided exempted service, disallowance of entire credit of ₹ 1,11,07,075/- allocated to Departments in Table-A providing taxable service is contrary to the principal of proportionality. Therefore, entire disallowance does not call for any decision in favour of Revenue. As an abundant caution, to make sure that the mathematical exercise is properly made by the appellant for allocation of credit rationally, the matter is remitted to the Adjudicating Authority to a limited extent to examine the allocation of the credit received by the appellant through departments in Table-C and allocable to departments in Table-A in the manner the appellant has carried out. Appellant's averment that the credit of ₹ 6,66,423/- allocated to the department in Table-B is reversed needs to be examined. - Matter remanded back for limited purpose - Decided in favor of assessee.
|