Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

A SERVICE NOT COVERED IN DEFINITION OF TAXABLE SERVICE IS AN EXEMPTED SERVICE UNDER CENVAT CREDIT RULES 2004

Cenvat Credit - By: - Mr. M. GOVINDARAJAN - Dated:- 23-4-2016 - In the year the provisions of Rule 6(3) of CENVAT Credit Rules, 2004 ( Rules for short) were omitted and Rule 3A has been inserted. Rule 3A has provided for option to the manufacturers and service providers. The first option is to maintain separate accounts in respect of services and inputs used for exempted/dutiable goods manufactured and services provided. If an assessee opts not to maintain separate records, the Rule provides for .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mmissioner of Central Excise, Customs & Service Tax, Bangalore - 2015 (11) TMI 1047 - CESTAT BANGALORE the Revenue, while scrutinizing the ST - 3 returns of the appellants for the year 2008-2008, found that the appellant was providing taxable services to SEZ units, which were exempted by Notification No. 4/2004-ST, dated 31.03.2004. The appellant was also providing services in Jammu & Kashmir region. After taking note of the ST-3 returns filed by the assessee for scrutiny, the assessee w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

peals) took the view that the appellant has satisfied the conditions in view of the retrospective amendment as per the Finance Act, 2010 carried out to Rule 6 and set aside the impugned order considering that the appellant had reversed the proportionate credit on the value of exempted services subsequently with interest. The Revenue filed appeal before the Tribunal and the appellant assessee has filed cross objections. The Revenue submitted the following before the Tribunal- The retrospective am .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l of proportionate credit when separate accounts in respect of inputs and input services used for providing exempted and dutiable services were not maintained; The appellant assessee contended the following: It cannot be said that the requirement of Rule 6(3)(ii) is a substantive requirement; The assessee had the option to make a choice out of the three methods prescribed in the Rules; Once credit is reversed it is deemed that the credit is not taken and therefore in this case once they had reve .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d by the assessee can be said to have fulfilled the requirement is not correct. This is in view of the fact that amendments were carried out and benefit of payment of proportionate credit attributable to exempted goods and services was extended only to manufacturers and not to service providers. The Tribunal in this regard refuted the contention of the appellant assessee that the omission was on the part of the legislature and there may be no intention to exclude output service providers. The Tr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt reversal will not be applicable. The amendment brought out in the year 2010 clearly provided for subsequent reversals by the manufacturers where they had omitted tor reverse the credit earlier and according to law they would have been required to pay 6%/8%/10% as the case may be. The Tribunal noted that before 01.03.2008 there were simple provisions that either maintain separate accounts or pay a specified amount in the Rule. The amendment in the year 2010 brought a drastic change and gave a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

can it be said that an assessee still has an option to reverse the credit subsequently as and when either the department points out or on assessee s own initiative. If it is allowed the provisions of Rule 6(3A) will become totally irrelevant and otiose. This cannot be the intention of the legislature. The appellant assessee contended that when the definition of exempted services in CENVAT Credit Rules, 2004 is read with the provisions of Section 64 and 66 of the Finance Act, 1994, the conclusion .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version