9911796707
TMI Blog2019 (5) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... y the appellant in this forum. 2. Facts of the case, in a nut shell, is that appellant is a provider of outdoor catering services who has been discharging its Service Tax Liability in terms of Rule 2C of the Service Tax (Determination of Value) Rules, 2006 on 60% of the gross bill charged to its customers w.e.f. 01.07.2012 and prior to it an abatement of 50% had been provided vide Notification No. 1/2006-ST subject to condition that no CENVAT credit was to be availed. EA-2000 audit conducted in September, 2015 in the appellant's unit for the period from 2010-11 to 2014-15, made an observation that appellant was required to reverse credit as required under Rule 6 of the CENVAT Credit Rules, 2004, on those 40% non-taxable service which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicable to all goods for the purposes of the CENVAT Credit Rules, 2004, irrespective of whether or not the said section is applicable for the purposes of working out the duty on such goods and in the instant case value has been determine on service portion involved in supply of foods or any other article of human consumption or any drink served by outdoor catering service @ 60% of the gross value, for which the other 40% cannot be treated as exempted portion of service to make Rule 6(3) applicable and therefore order of Commissioner (Appeals) is required to be set aside. He placed his reliance on the case laws reported in 2010 (20) STR 696 (Tri. Del), 2009 (15) STR 23 (Tri. LB), 2011 (23) STR 97 (Kar.), 1989 (43) ELT 195 (SC) etc. 4. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is determination as 60% of the gross value and going by the explanation 1, it is fair market value of all goods and services supplied. Market value of goods has been determined on its sale value and going by the definition of services included in the Finance Act under Section 65B(44) w.e.f. 01.06.2012 sale is excluded from service. 5.1 Dispute relating to taxability on sale and levy of duty by the excise authority is not new in its origin and on many sources, matter had reached the apex court level that necessitated passing of the Constitution (Forty Sixth Amendment) Act, 1982 and going by its Statement of Objects and Reasons, it can be ascertained that in conformity to the judgment of Hon'ble Supreme Court passed in Ganon Dunkerley' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of 40% of gross value received from catering services cannot be definitely considered as exempted services to make Rule 6(3) of CENVAT Credit Rules, 2004 applicable and to maintain separate records for availment of CENVAT credit on it including on processed food purchased as raw material. 8. Appellant also challenged the maintainability of invocation of extended period that covers period prior to 01.06.2012. As found from the show-cause notice and subsequent adjudication orders, observation made by the audit was the primary source from where the proceeding was initiated against the appellant. 9. Now coming to the statutory audit procedure, the purpose of audit, as available in the Manual published by the Institute of Chartered Account ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
