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2020 (12) TMI 281 - CESTAT CHANDIGARHReversal of CENVAT Credit - works contract service - case of revenue is that the the service provided is partly exempted services which is the part of works contract service to be treated as exempt service in view of Rule 2(e) of the Cenvat Credit Rules, 2004 and as such the appellant was required to pay an amount under Rule 6(3)(i) of cenvat credit availed by them - HELD THAT:- As the facts of the case similar to the facts of the case of M/S SURYA CONTRACTORS PVT. LTD. VERSUS CCE & ST- JALANDHAR [2020 (3) TMI 756 - CESTAT CHANDIGARH], which is not disputed by any side. It was held in the said case that there is only one transaction of Works Contract Service which is taxable service of which certain portion has been exempted. There are no distinct transactions for two services involved. In such a situation, Rule 6 doesn't become applicable, it is only one distinct service. It is not even the case of the department that the appellant was providing two different services when it is one service where exemption has been provided to certain value would not mean that the appellant was providing exempted service which otherwise is taxable. As Rule 6 (3) was not applicable, the demand made under Rule 6(3) cannot be sustained. As the issue has already dealt with this Tribunal, the provisions of Rule 6(3) of CCR, 2004 are not applicable to the facts of the case, consequently no demand is sustainable against the appellant. Appeal allowed - decided in favor of appellant.
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