9911796707
TMI Blog2023 (9) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... also the same. 2. Brief facts of the case are that the appellant is registered for Service Tax and pay service tax since 1996. Appellant places advertisements for clients in various newspapers and magazines and receives the cost of such advertisements as press space bill. Appellant retains 15% of the amount charged to the ultimate customer and remaining 85% of the amount collected from ultimate customer remits to the newspapers or magazines which publish advertisements. Appellant pays service tax on 15% amount retained by it and does not pay any service tax on the balance 85% of the amount which he does not retain but collects from the ultimate customer and transfers the same to the newspapers or magazines which publishes the advertisemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... around Rs.9.32 crores. The said show cause notice was also contested on similar lines. The show cause notice dated 19.12.2012 was adjudicated through orderin- original dated 18.11.2016 wherein the original authority has confirmed the demand of Rs.4,90,25,118/- and imposed equal penalty under Section 78 of Finance Act, 1994 and imposed another penalty of Rs.10,000/- under Section 77 of Finance Act, 1994. Aggrieved by the said order, appellant is before this Tribunal through appeal No. ST/87732/2016. The other show cause notice dated 19.04.2017 was adjudicated through orderin- original dated 31.01.2019. The original authority has resorted to Rule 6(3A) of Cenvat Credit Rules, 2004 and held that proportional Cenvat credit in respect of exempte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value by excluding 85% of the part is in accordance with the said Circular dated 31.10.1996 and as a result, the findings of the original authority in both the impugned orders are liable to be set aside. As an alternative argument, he has submitted that the stand taken by Revenue in respect of order-in-original dated 31.01.2019 to the effect of collecting only service tax component that was consumed in the 85% of the assessable value is also applicable to order-in-original dated 18.11.2016. He has further submitted that the appellant was registered with Service Tax and was regularly subjected to audit and, therefore, the activities of the appellant were known to Revenue and, therefore, extended period of limitation was not invokable. 4. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utiable final products or in providing output service and the quantity of input meant for use in the manufacture of exempted goods or services and take CENVAT credit only on that quantity of input or input service which is intended for use in the manufacture of dutiable goods or in providing output service on which service tax is payable." Simple reading of the said provisions indicates that there should be more than one service provided by a service provider for invocation of said sub-rule (2) and one of the services provided should be exempted service. This is pretty clear from the words "as well as" used in the said sub-rule (2). It further provides that Cenvat credit in respect of inputs or input services going into service on which s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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