TMI Blog2018 (6) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... ore service is taxable only part of the value is exempted vide notification No. 29/2004-ST dated 22-9-2004 - In this fact entire basis of Revenue that interest being exempted service therefore Rule 6(3)(ii) is applicable is absolutely incorrect. In the present case lending service which is one of the banking and other financial service is taxable only part of the value of such service which represent interest is only exempted therefore Rule 6(3) has no application. The demand of 8%/6% raised by the adjudicating authority is not sustainable - appeal allowed - decided in favor of appellant. - Appeal No. ST/85778/2014 - Order No. A/86340/2018 - Dated:- 15-5-2018 - Hon ble Mr. Ramesh Nair, Member ( Judicial ) And Hon ble Mr. Raju, Mem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed under Rule 6(3) read with Rule 14 of Cenvat Credit Rules, 2004 and proviso to Section 73(1) of Finance Act, 1994. Impugned order also demanded interest under Section 75, penalty of equal amount was also imposed under Section 78. Being aggrieved by the order-in-original appellant filed present appeal. 2. Shri Ashok S. Gandhi, Ld. Counsel appearing on behalf of the appellant submits that appellant have availed cenvat credit only in respect of those services which are specified under Rule 6(5) of Cenvat Credit Rules, 2004 where full credit is available even though the assessee provides exempted and taxable services therefore Rule 6(3) shall not apply. He further submits that appellant already paid an amount of Cenvat credit availe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erms of Notification No. 29/2004-ST dated 22-9-2004 which reads as under: Service tax exemption for providing services of overdraft, cash credit or discounting of bills on value of interest or discount In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts so much of the value of taxable service provided to a customer, by a banking company or a financial institution including a non-banking financial company, or any other body corporate or commercial concern, in relation to,- (a) overdraft facility; (b) cash credit facility; or (c) discounting of bills, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant have availed option of reversal of actual cenvat credit in such case also payment of 8%/6% is not sustainable. It is also observed that appellant have claimed that they have availed cenvat credit only on the service specified under Rule 6(5) of Cenvat Credit Rules, 2004, so then even though the such input service was used for the exempted service also, the Cenvat credit cannot be denied, consequently, Rule 6(3)(ii) shall not apply. The similar issue has been considered in this Tribunal judgment in case of Vaidyanath (supra) and held that service is not exempted as only part of value is exempted. As per our discussion demand of 8%/6% raised by the adjudicating authority is not sustainable on multiple counts as per above discussion. Accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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