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2018 (8) TMI 325 - AT - Service TaxCENVAT Credit - input services - painting and polishing work carried out in the Hotel - denial of credit on the ground that the hotel rooms were exempted from service tax during the relevant period - Held that:- Rule 6(5) of the Cenvat Credit Rule stipulates that no credit shall be allowed on input services which are used exclusively for output service which is exempted or not liable to payment of service tax - In the present case, it cannot be stated that the construction service of painting has been used exclusively for rendering exempted service and hence the demand for reversal is not justified. In addition, it is seen from the record that the appellant has been proportionately reversing the credit on inputs/ input service as per Rule 6(3) of the Cenvat Credit Rules, 2004. Appeal allowed - decided in favor of appellant.
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