2013 (11) TMI 1302

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..... The application for submission of additional evidence is for producing correct accounting codes of the input services on which credit has been taken. It is not possible for Tribunal to verify the particulars. But this is taken on record and it will be sent for verification, as and when required. The Miscellaneous Petition is disposed of accordingly. 3. Stay petitions is basically in respect of demands confirmed by invoking the provisions of Rule 6(3) of Cenvat Credit Rules, 2004 on the ground that the applicant has been providing both taxable service and exempted service and in spite of that they did not restrict the utilization of credit to 20% of the tax paid on output service as per Rule 6(3), as was in existence prior to 01-04-2008. T .....

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..... ing service tax. The applicant was of the view that these charges are not for any services rendered. 5. The core of the dispute before us is whether lending is an exempted service and whether interest realized for loans and hire purchase has to be considered as consideration for exempted service rendered while deciding on the Cenvat credit that can be taken and utilized considering the provisions under Rule 6 of the Cenvat Credit Rules, 2004 from time to time. The learned Advocate submits that as per provisions of Rule 2(e) of Cenvat Credit Rules, 2004, an exempted service is one which is wholly exempted from service tax. In the case of loan, interest is not included for the purpose of levy of service tax by virtue of provisions under Rule .....

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..... of application etc. and only in respect of such charges, the applicant was paying service tax. As per provisions of Rule 2(e) any service on which service tax is not paid, is to be considered as an exempted service, since interest is a major portion out of this activity, giving loans has to be considered as exempted service. 8. We have considered submissions on both sides. Firstly we notice that the impugned order is passed by skirting a decision on the critical issue whether services namely giving loans, hire-purchase services etc. are exempted services or not and for that reason the impugned order is faulty. Prima facie we are of the view that these activities are taxable services not withstanding that for deciding the value of service .....

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