TMI Blog2013 (11) TMI 1309X X X X Extracts X X X X X X X X Extracts X X X X ..... en utilized in providing exempted services, in our opinion, are not eligible to the CENVAT Credit in view of the specific provision contained in Rule 6(1) of CENVAT Credit Rules. If the Applicant could not able to maintain separate account of the input services that were used in providing taxable services and exempted services, then consequences, are accordingly, mentioned under subsequent sub-rules. We do not find prima facie any apparent error in the computation of CENVAT Credit demand arrived in Annexure (C) to the show cause notice which has been calculated as per the formula prescribed under sub-rule 3A of Rule 6 of CENVAT Credit Rules, 2004 - Hence, the demand is not entirely barred by limitation. Besides, the issue of limitation i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Applicant are eligible to the benefit of said Notification No.29/2004-ST dated 22.09.2004 as amended on the quantum of interest charged on discounting of bill services from their customers. He submits that the intention of legislature is not to levy of Service Tax on the interest component, but only on the service charge component that are received from the customers/clients in providing Banking Financial Services. The Ld. Chartered Accountant further submitted that they do not dispute on the levy of Service Tax on renting of immovable property and had already paid the demand confirmed on this aspect. On the denial of CENVAT Credit on the input services that were utilized in providing exempted services and computed in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purview of Service Tax. In support he has referred to the Notification No.4/2006 dated 01.03.2006, wherein, exemption to the extent of 90% of interest forming part of the taxable value on financial leasing services, are exempted from the purview of Service Tax liability. He has vehemently argued that to come within the four corners of an exemption Notification, the burden lies on the assessee to establish that it fulfills all the laid down conditions under the said definition. In support he has referred to the judgement of the Hon ble Supreme Court in the case of Commissioner of Central Excise vs. Hari Chand Sri Gopal -2010 (260) ELT 3 (SC). 5. The Ld. Special Counsel further submitted that since the Applicant are providing both exempte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ft, cash credit or, as the case may be, discount, from the service tax leviable thereon under section 66 of the said Act, subject to the condition that the said interest amount is shown separately in an invoice, a bill or, as the case may be, a challan issued for this purpose. Note: See also amendment made by Notification No.19/2006-ST, dated 25.04.2006. 7. On a plain reading of the said Notification, prima facie, we are of the opinion and agree with the finding of the Ld. adjudicating authority, that the exemption on the amount of interest is limited to (a) over-draft facility and (b) cash credit facility. At this juncture, we are not able to appreciate the argument of the Ld. Chartered Accountant that the interest earned on discountin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sequent sub-rules. We do not find prima facie any apparent error in the computation of CENVAT Credit demand arrived in Annexure (C) to the show cause notice which has been calculated as per the formula prescribed under sub-rule 3A of Rule 6 of CENVAT Credit Rules, 2004. The Ld. Chartered Accountant has accepted that only from 2008 they have informed the department about availing the benefit of Notification and not earlier. Hence, the demand is not entirely barred by limitation. Besides, the issue of limitation is a mixed question of facts and law and would be examined at the time of disposal of the Appeal after appreciating the evidences on record. No financial hardship is pleaded. In these circumstances we are of the opinion that the Appli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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