9911796707
TMI Blog2018 (12) TMI 593X X X X Extracts X X X X X X X X Extracts X X X X ..... roviding services to their clients situated in the state of Jammu & Kashmir and are also providing some services like Crop Insurance, Marine Insurance etc. which are exempted for procurement of business. The appellants appointed agents who procure insurance business for the appellants. The agents are paid commission based on the insurance premium earned by them. The service provided by them is liable to Service Tax under the category of "Insurance Auxiliary Services" and the appellants are liable to pay Service Tax under "Reverse Charge Mechanism". As the appellants were not in a position to capture the information in respect of CENVAT credit providing the taxable services and CENVAT credit providing for exempted services. The appellants ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directed himself on the issue, in as much that the claim of the appellant that to deny of CENVAT credit on the Service Tax paid on services rendered towards exempted service like Crop Insurance is correct but at the same time, CENVAT credit availed on other services on which the Service Tax liability discharged is eligible to be availed in toto. Prima facie I find that the first appellate authority, has while holding against the appellant did not consider this point as to whether appellant should be granted the entire amount of eligible CENVAT credit which he has reversed while applying the provisions of Rule 6(3) of the CENVAT Credit Rules, 2004. 8. I also find that in a similarly connected matter, this Bench has remanded the matter back ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in providing output services which are wholly exempt or no Service Tax levied. Therefore, the appellants are not required to reverse the CENVAT credit of Rs. 37,01,553/-. The appellants have already reversed the credit pertaining to exempted services by applying the formula under Rule 6(3A) of CENVAT Credit Rules, 2004 to the entire pool of the credit taken. Therefore, the demand of Service Tax is unsustainable. 4.1 Learned Counsel further submitted that the learned Commissioner (Appeals) has erred in holding that the agents are providing services in relation to the exempted General Insurance Services and therefore CENVAT credit in this regard is inadmissible. The appellants have not appointed any insurance agent who is exclusively provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Order-in-Appeal. 6. I find, on going through the records of the case, that the lower Authorities have not appreciated the order of the Tribunal in the correct prospective. It was directed that claim of the appellants that they have already reversed the credit in excess of demand made by the Authorities be verified. It is seen that they have not verified the fact and correctness of amount of reversal. It has been only been held by the original Adjudicating Authority as well as the Appellate Authority that the appellants did not provide any documentary proof etc. towards the same. It was clearly held in the CESTAT order dated 11.09.2015 that the first Appellate Authority has totally misdirected himself on the issue, in as much as while den ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment with a intention to evade payment of duty. 7. In view of the above, the matter requires to go back to the original Authority to examine the issue properly in the light of direction given in CESTAT order dated 11.09.2015 (supra) and to verify - (i) The eligibility of the appellants to the credit availed by them on input services used in output services on which tax liability was discharged. (ii) If the claim of excess reversal of CENVAT by appellants was correct. (iii) Whether extended period is invokable in the facts & circumstances of the case. The original Authority is directed to pass a suitable order within three months of receipt of this order. The appellants are directed to submit records/documents etc, supporting their clai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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