9911796707
TMI Blog2023 (6) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... Maintenance and Repair Service (MRS) and Consulting Engineers (CER) & Test, Inspection and Certification (TIC) and they are registered for providing these services with the service tax department. The officer of Indian Audit and Accounts Department audited the Financial Records of the Respondent for the period 2004 -2005 to 2007 - 2008 and it was noticed that the Respondent Assessee had paid service tax under the category of Commercial Construction Service after availing abatement of 67 %. As per the provision of Sr. No. 7 of Notification No. 1/2006 - ST dated 01.03.2006 in spite of the fact that they had availed and utilized cenvat credit on input services during the above mentioned period of audit. The department was of the view that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich were ultimately used for providing output service under the category "Construction Service" / "Commercial and Industrial Construction Service" and thereafter arrive at the objective satisfaction as to whether the benefit of Notification No. 15/2004-ST dated 09.04.2004 and Notification No. 1/2006-ST dated 01.03.2006, as the case may be is available or otherwise." 1.4 During the course of hearing the respondent assessee mentioned that the cenvat credit availed by the respondents under other services was availed and utilized for payment of service tax under the category of construction service. It has been contended by the Respondent that the allegation that cenvat credit with respect to other inputs, input services availed and utilized f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d any conditions of Notification No. 01/2006 - ST dated 01.03.2006. 2.2 It is further being mentioned that the appellants are not sure and had adduced no evidence in support of their argument that certain service like security service might have been used in Commercial and Industrial Construction Service also. 2.3 The Learned Advocate for the respondent have mentioned that the condition of Notification No. 01/2006 does not bar them from availing and utilizing cenvat credit availed on providing other services i.e. other than Commercial and Industrial Construction Service and therefore, the utilization of such accumulated cenvat credit for discharge of service tax liability of Commercial and Industrial Construction Service would not dis-ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is eligible to avail the abatement of 67% provided in the said notification, he is at liberty to make payment of service tax either in cash or from the accumulated balance of cenvat credit available with him by virtue of cenvat credit taken on other taxable services as both are lawfully accepted modes of service tax payment and there being no stipulation in Cenvat Credit Rules, 2004 for one to one corelation between the input service Cenvat Credit and the payment of service tax on output service. I find that utilisation of cenvat credit for payment of service tax by the said assessee is in accordance with Rule 3(4)(e) of Cenvat Credit Rules, 2004 which reads as 'The Cenvat credit may be utilized for payment of service tax on any output ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ST -3 return for the period from April-2006 to September-2008 under the category of "Commercial Construction Service" and the following picture emerges which is tabulated in the below given table: Period Of ST-3 Return Cenvat credit taken and utilized under the category of " Commercial or Industrial Construction Service" Service Tax paid through Cenvat Credit Relevant para of the ST-3 return April -06 to September-06 Nil Nil 4(A) October-06 to March- 07 Nil 23,80,716/- (Dec 06 & Jan 07) 4 A (I) (a), (b) & (c) April 07- to September -07 Nil 4A (I) (a), (b) & (c) October-07 to March-08 Nil 4A (I) (a), (b) & (c) April- 08 to September -08 Nil 2,18,650/- 4A (I) (a), (b) & (c) 27.6 Thus, it is amply clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial Accounts of the respondent assessee. As reproduced above, the Adjudicating Authority has physically verified the ST-3 return for the relevant period. He has also taken a chartered accountant certificate in lieu of the verification wherein whether the cenvat credit on the input and input service and capital goods is availed by the respondent assessee or not for basically making them enable to avail the benefit of abatement under Notification No. 01/2006 dated 01.03.2006. The department in its appeal memo has not mentioned anything to disprove the decision reached by the adjudicating authority of dropping the demand as the basic allegations in the show cause notice were not supported by any evidences. It is a matter of record that the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
