TMI Blog2017 (11) TMI 1468X X X X Extracts X X X X X X X X Extracts X X X X ..... ionate calculation of the input service credit attributable to the taxable output service of “commercial or industrial construction” can be categorically established from such records - in case of reversal of such proportionate credit attributable to commercial or industrial construction service then the appellants eligibility to the abatement is to be upheld - the appellant is covered by the ratio of the above case. Whether or not reversal of proportionate credit will satisfy the ratio with reference to non-availment of credit which is a condition for abatement? - Held that: - It is clear that reversal of credit even to a proportionate extent attributable to a particular output service will satisfy the condition of Notification providin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r actual amount of credit availed on input services claimed to be utilised in rendering the services of industrial Construction in relation to which it had claimed abatement of 67%, as it had not maintained separate accounts for the input services utilized for rendering Industrial Construction Services ? 3. Brief facts of the case are that the appellants are engaged in the manufacture of various engineering equipments, components, spares etc. They were also engaged in providing taxable service under the category of Commercial or Industrial Construction Service , Erection Installation or Commissioning Service etc. They were discharging Service Tax on taxable services. The appellant claimed abatement of value of 67% in terms of Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant for abatement, considering that such reversal will amount to non-availment of credit. The direction of the Hon ble Chhattisgarh High Court is for re-determination of the eligibility of the appellant for abatement, which is linked to the condition of non-availment of Cenvat Credit on input services. The proportionate reversal of credit, which can be satisfactorily established based on documents, fulfils the condition and as such, the appellants are eligible for such abatement. 6. The ld. AR contested the appeal on the ground that reversal as claimed is much after the adjudication by the original authority. Further, the quantification of proportionate credit is not satisfactorily explained and as such, the claim for abatement is liabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The next point for consideration is whether or not the appellants are covered by the said ratio, in view of the dispute relating to reversal of credit itself. The ld. Counsel for the appellant categorically asserted that they maintain accounts invoice-wise and credit availed on various common input services have been duly captured in their accounts and the value of taxable services is also available. The proportionate calculation of the input service credit attributable to the taxable output service of commercial or industrial construction can be categorically established from such records. He offered that such verification can be done even now. We note that in case of reversal of such proportionate credit attributable to commercial or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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