TMI Blog2011 (5) TMI 834X X X X Extracts X X X X X X X X Extracts X X X X ..... f material is a separate contract the service used for executing the contract cannot be considered as used in providing output service, appellant should deposit an amount of Rs. 30 lakhs, balance dues arising out of the impugned order shall be waived - ST/408/2010 - ST/275/2011(PB) - Dated:- 2-5-2011 - Ms. Archana Wadhwa, Shri Mathew John, JJ. Shri A.R. Madhav Rao, Advocate, for the Appellant. Shri Sonal Bajaj, SDR, for the Respondent. [Order per : Mathew John, Member (T)]. The appellant is in the business of executing turnkey projects in the field of rural electricity infrastructure and household electrification on turnkey basis mostly for State Electricity Boards. For execution of such contracts the appellant-company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit should be allowed only on service tax paid on commission and insurance relatable to value of services. Since the appellant had taken credit for full amounts of taxes the Revenue has issued a show cause notice dated 26-6-2008 demanding the excess credit taken which stands confirmed along with interest and penalties. The tax amount so demanded is Rs. 1,32,69,499/- for the period April, 2006 to Dec., 2007. 5. The Counsel for the appellant argues that valuation for the purpose of charging tax and allowing credit are two different issues and the Revenue has made a mistake by seeing the latter in the context of the former. They argue that they are eligible for exemption under Notification 12/2003-S.T., dated 20-6-2003 for the value of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t service. A reading of the provisions of Rule 6 of Cenvat Credit Rules along with Rule 3 prima facie suggests strength in the stand of the department. 10. However the objection of the appellant that extended period of time cannot be invoked in this case prima facie is in appellant s favour because the details of credit taken were being reported in ST-3 returns. We note that the demand which is within the period of one year is about Rs. Thirty lakhs. Having regard to this we order that the appellant should deposit an amount of Rs. 30 lakhs within eight weeks of receipt of this order for admission of the appeal. Subject to such deposit the balance dues arising out of the impugned order shall be waived and there shall be stay on collection ..... X X X X Extracts X X X X X X X X Extracts X X X X
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