TaxTMI 
TaxTMI 
2018 (9) TMI 1661
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....ing and Financial Services. Some of the services provided by them are taxable services in terms of Finance Act, 1994 and some are exempted. During the period under dispute, they were availing the Cenvat credit in terms of Cenvat Credit Rules, 2004. Since they were providing both taxable and exempted services, they opted for reversal of proportionate credit of service tax in terms of the formula given in Rule 6 (3A) of Cenvat Credit Rules, 2004. For final reversal of excess credit taken during the respective financial year, the formula is prescribed under Rule 6 (3A)(b)(iii). As per this formula, the amount attributable to input service used in or in relation to provision of exempted services is E/F*G Where, E = Total value of exempted ser....
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....In terms of Notification No.4/2006-ST, dated 01.03.2006, exemption has been granted to the value of the taxable service to the extent of 90% of the amount representing the interest. Though, there is no dispute about the payment of service tax in terms of the above notification, the department was of the view that the exemption granted vide the above notification is to be added to the total value of exempted services. Accordingly, the value of the exempted portion was added to both numerator and denominator in the above formula resulting in the demand for reversal on credit ordered by the adjudicating authority in the impugned orders, against which the present appeal stand filed. 5. In this context, heard Shri P.C. Anand, Consultant and Shr....
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....or reversal of an amount attributable to input services used in or in relation to exempted services. There is no dispute that the appellant has discharged the service tax liability on Financial Leasing Services by availing the exemption under Notification No.4/2006, dated 01.03.2006. The said notification specified that service tax is required to be paid on a value equal to 10% of the total amount representing interest. Balance 90% will enjoy exemption from payment of service tax. 10. The definition of "exempted services" prevailing the during the relevant period is reproduced below:- "exempted services" means taxable services which are exempt from the whole of the service tax leviable thereon, and includes services on which no service t....