Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 644 - AT - Service TaxCENVAT Credit - common input services for taxable as well as exempt services - general insurance service - insurance auxiliary service - separate record of consumption of input service, required under rule 6(2), were not maintained - rule 6(3) of CENVAT Credit Rules, 2004 - HELD THAT:- There can be no doubt that the credit availed on the impugned input services cannot be denied as the tax liability has been included in the value made over to the provider of service. Again, there can be no doubt that rule 6(1) of CENVAT Credit Rules, 2004 precludes the availment of credit attributable to input services used for providing exempted services except in circumstances of maintenance of separate accounts for receipt, consumption and inventory and taking credit only to the extent that is attributable to providing of taxable service; as an exception to these two, necessarily to be read in unison, the discharge of tax liability by restricting the debit of CENVAT credit to the percentage stipulated supra is acceptable in law. Such restriction is not, in any way, connected to the entitlement, or availability, of credit but is intended to ensure that, at any point in time, the discharge of tax liability by payment to the exchequer shall not be less than 80% of the dues. The computation of tax liability in the show cause notice has proceeded on the assumption that CENVAT credit which is not permissible to be utilised for discharge of tax liability does not accrue to the credit of the assessee and the accumulation thereof which could have been utilised after the scheme of computation was altered has not been taken notice of. Appeal dismissed - decided against Revenue.
|