Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 559 - AT - Service TaxCENVAT Credit - common input services, which had been used in or in relation to providing of “taxable service” as well as exempted service - non-maintenance of separate records - Rule 6(3)(i) of the Cenvat Credit Rules, 2004 - Held that:- Admittedly appellant have reversed the Cenvat credit availed in respect of the common input services - As per the Hon‟ble Karnataka High Court decision in the case of CCE, Mangalore vs. Kudremukh Iron & Steel Company Ltd. [2011 (4) TMI 950 - KARNATAKA HIGH COURT], the reversal of the credit relatable to the exempted final services would amount to a situation as if no credit was availed. If that be so the question of payment of any amounts on the final exempted service does not arise at all - thus, only the Cenvat credit in respect of input services relatable to their uses in the exempted services is required to be reversed on proportionate basis - matter remanded for calculation of the credit to be reversed by the assessee. Penalty - Held that:- There being a bona fide issue of interpretation of legal provisions as also for appreciating the fact that the credit was availed by reflecting the same in the statutory records, the penalty is set aside. Appeal allowed by way of remand.
|