Case Laws
Acts
Notifications
Circulars
Classification
Forms
Manuals
Articles
News
D. Forum
Highlights
Notes
🚨 Important Update for Our Users
We are transitioning to our new and improved portal - www.taxtmi.com - for a better experience.
⚠️ This portal will be discontinued on 31-July-2025 at 23:59:59
⏳ Remaining Time: 4d 18h 21m 3s
If you encounter any issues or problems while using the new portal,
please let us know
via our feedback form
, with specific details, so we can address them promptly.
Home
2024 (6) TMI 1010 - AT - Service TaxCENVAT Credit - taking credit commonly for both exempted goods and the taxable service - various services used for laying the pipeline which ultimately was used for supply of the CBM gas. Demand of Rs. 11, 12, 41, 507/- based on Rule 6(3A) of the Cenvat Credit Rules 2004 - HELD THAT - It has been held by the Adjudicating Authority that the Appellant was registered as service provider and was filing of their Returns towards the Cenvat taken by them. Appellants were carrying bona fide belief that no excisable goods were being manufactured by them. Therefore they neither took the Registration nor did they file any Returns. In spite of the ST-3 Returns being filed as service provider the Department did not issue any query as to whether they were also into manufacturing of the gas. Therefore it is held that the demand of Rs.11, 12, 41, 500/- raised based on the alleged exempted turnover of the goods is legally not sustainable on account of time bar in respect of the demand pertaining to extended period. The Adjudicating Authority has set aside this demand on merits in the Order-in-Original and the same is upheld. Demand of Rs. 5, 27, 86, 789/- for Cenvat Credit taken for services used in laying pipelines - HELD THAT - Even if any immovable property comes into being but if the same is used for provision of output service resulting in payment of Service Tax the Cenvat Credit cannot be denied. Considering that the Appellant is eligible to take the Cenvat Credit. On merits the confirmed demand of Rs.5, 27, 86, 789/- along with interest and penalty on merits is set aside. The Appeal filed by the Revenue stands rejected and the Appeal filed by the Assessee stands allowed.
|