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TMI Blog2021 (11) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... of amount for reversal (of proportionate credit), as per Rule 6(3)(ii) of Cenvat Credit Rules. 2. Brief facts of the case is that the appellant, having Service Tax Registration No.AAACN4276CSD002, are service providers of works contract service and Business Auxiliary Service. They also undertake trading of various items such as coal, iron ore, iron ore fines, pellets, etc. apart from supply of fabrication and construction material and engineering equipments, under proper sales invoices. The appellant also avails cenvat credit of service tax paid on input services including common input services such as practicing CA services, Credit rating agency services, GTA services, Man Power Supply Services, Banking Services, insurance services. They ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovision of Rule 14 of the Cenvat Credit Rules, 2004 read with Section 73 of the Finance Act, 1994, along with interest under Section 75 of the Finance Act, 1994 and penalty of Rs. 20,40,012/- under Rule 15(3) of the CCR, 2004 read with Section 78 (1) of the Finance Act, 1994. 6. Being aggrieved, the appellant filed the appeal before the Commissioner (Appeals) on the following grounds:- (i) Reversal done by appellant prior to issue of show cause notice is in accordance with law. (ii) Reversal already made by the appellant is in compliance with Rule 6 (3). (iii) Demand is barred by limitation. (iv) No penalty is imposable and no interest is chargeable. 7. Ld. Commissioner (Appeals) agreeing with the findings of the Asstt. Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant have made reversal under Rule 6(3)(ii), even before the issuance of show cause notice, based on the aforementioned formula. 11. The only dispute in the instant case is regarding the value of trading activities to be taken for calculation. Thus, the dispute is whether the numerator of the formula should also include the value of the supplies or the goods used in the execution of the works contract service, as trading goods. Admittedly, the value of the goods transferred in the course of rendering of works contract service, is not a trading simplicitor. There are separate rules -- Service Tax (Determination of Value) Rules, 2006, which provides determination of taxable value for levy of service tax. The value of goods deemed to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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