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2015 (11) TMI 225

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..... 06 and has correctly claimed the legitimate CENVAT credit available. - issue involved in this case is being a question of interpretation, penal provisions need not be invoked and appellant be visited with any penalties. The penalties imposed by the adjudicating authority is also liable to be set aside - Decided in favour of assessee. - Appeal No. ST/154/09 - Final Order No. A/2765/2015-WZB/STB - Dated:- 13-8-2015 - Mr. M.V. Ravindran, Member (Judicial) And Mr. C.J. Mathew, Member (Technical) For the Petitioner : Shri S.S. Gupta, C.A. For the Respondent : Shri K.S. Mishra, Addl. Commissioner (AR) ORDER Per: M.V. Ravindran This appeal is directed against Order-in-Original No. P-I/Commr/ST/03/2009 dated 25.03.2009. .....

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..... e service tax paid by the appellant for the services rendered prior to 01.03.2006 but payment of such services were made by them from March 2006 onwards. He would submit that an identical issue was decided by this Tribunal in the case of Santosh Associates 2009 (16) STR 87 (Tri. Ahmd.). Alternatively, it is his submission that the value which has been considered for computation of the tax liability is incorrect as material cost is also included which requires to be reduced and entire CENVAT credit which has been taken by the appellant during the relevant period can be reversed and no demand of tax liability would arise. His further submission is that there is a confirmation of an amount approximately of ₹ 15.00 lakhs which is arising .....

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..... d amount as per law. 6.1 As regards the service tax liability on the amount which has been claimed as abatement we find that the adjudicating authority was incorrect in holding it so for more than one reason. 6.2 Firstly the said Notification 1/2006-ST came into the effect from 01.03.2006. In the case in hand the appellant had taken a plea before the lower authority that the CENVAT credit availed by them on the service tax paid by various service providers were in respect of the services rendered before 01.03.2006 and there was no restriction for availing such CENVAT credit and claiming abatement from the total value of the bill. It is also the plea of the appellant before the lower authority that post 01.03.2006 they have not taken C .....

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..... e instructions issued of the Board at the time of introduction of services for commercial training, wherein a view was taken that in respect of services rendered continuously and part of services rendered prior to imposition, proportional tax shall be leviable. I also find the decisions of the Tribunal in Art Leasing case cited by the Consultant is also applicable even though I find other two decisions are not exactly applicable to the facts of the case. In Art Leasing case, the Tribunal held that taxable event had already occurred when the hire purchase contract was entered and installment payment started. The Tribunal also held that installments are only obligation of hirer and rate of services will be the rate prevailing on the date on w .....

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..... manufacturer or the service provider who has taken credit on such input service, shall pay an amount equal to the CENVAT credit availed on such input service and in case the said payment is made, the manufacturer or output service provider, as the case may be, shall be entitled to take the credit of the amount equivalent to the CENVAT credit paid earlier subject to the other provisions of these rules: It can be seen from the above reproduced 2nd proviso that, on the contrary it supports the case of the appellant herein, as it mandates legitimizing the credit availed only on payment to service provider. 6.5 Since we have disposed of the appeal filed on merits, we are not recording any findings on other various submissions made by bo .....

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