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2019 (8) TMI 1680 - CESTAT NEW DELHISSI Exemption - clubbing of clearances - clubbing with an independent separate entity which exist for a period of only three months and thereafter it has closed its operations - GTA Services - CENVAT Credit - reverse charge mechanism. SSI Exemption - Clubbing of the clearances of M/s Suparash Electro Product Co., a proprietorship firm with the appellant for determining the exemption limit under N/N. 8/2003-CE dated 1 March 2008 - HELD THAT:- M/s Suparash Electro Product Co. has worked from the same manufacturing premises for a brief period between April 2016 to June 2016 and effected clearances of excisable goods valued at ₹ 29,55,128/- and availed SSI exemption Notification 8/2003-CE. The appellant have taken over the manufacturing unit from M/s Suparash Electro Product Co. on lease basis and started manufacturing from October 2016 - both the firms are independent and they have no dealings in terms of the finance or otherwise with each other. It is a settled principal that the appellant being independent manufacturer although they had used the manufacturing unit of M/s Suparash Electro Product Co., these clearances to be independently taken into consideration for deciding the SSI exemption benefit - thus, the clearances of M/s Suparash Electro Product Co. cannot be added to the clearances of the appellant for determining the turnover for exemption under the Notification No. 8/2003-CE. CENVAT Credit - GTA Services - reverse charge mechanism - HELD THAT:- Since, the appellant was not having any evidence to show whether the service provider has availed the Cenvat credit on any of the inputs, the service tax has been confirmed by the lower authorities including the learned Commissioner (Appeals). N/N. 26/2012 dated 20 June 2012 was amended by Notification No. 8/2014 w.e.f. 11 July 2014 whereunder the previous notification was amended and as a result the condition of Cenvat credit availment was made applicable only with respect to the service provider. A prudent analysis of the above-mentioned notifications and their amendments lead to the conclusion that the condition of non-availment of the Cenvat credit is required to be satisfied by the service providers only and service recipient will not be required to establish the satisfaction of this condition - the appellant have rightly discharged their service tax liability on the charges paid by them on availing the goods transport agency service and therefore the impugned order-in-appeal is without any merit and need to be set aside. The demand on both the counts is not sustainable - appeal allowed - decided in favor of appellant.
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