9911796707
TMI Blog2024 (3) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... -along with interest and imposed penalty of Rs.73,25,832/-. Aggrieved against the confirmation of these demands, the Appellant has filed this appeal. 2. Briefly stated facts of the case are that a Show Cause Notice dated 12.10.2012 was issued to the Appellant on three issues. The adjudicating authority has adjudicated the Notice and confirmed the demand in respect of two issues and dropped the demand in respect of one issue. The Appellant has filed appeal against the two issues where the demand has been confirmed. 2.1. The two issues where the demand has been confirmed in this case, are furnished below: (i) The Appellant has received a consideration of Rs.5,64,65,000/- from M/s. Flender Limited for non-compete agreement for a period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Appellant from M/s. Flender Limited for non-compete agreement for a period of 3 years. In their written submission, the Appellant stated that 'Protection of goodwill, confidential information and employee base' for which the non-competent fee was paid is not covered by any of the clauses listed under the definition of 'Business Auxiliary Service'. In the impugned order, the adjudicating authority observed that by not competing and/or not letting the restricted persons to compete, the Appellant is indirectly promoting the business of M/s. Flender. We observe that that there is no room for any assumption or presumption in a taxing statute. In order to bring any service within the scope of 'Business Auxiliary Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owever, in respect of the services specified in Rule 6(5) of the CENVAT Credit Rules, 2004, there is no such restriction. 5.1 For the sake of ready reference, the provisions of Rule 6(5) of the CENVAT Credit Rules are reproduced below: "(5) Notwithstanding anything contained in sub-rules (1), (2) and (3), credit of the whole of service tax paid on taxable service as specified in sub-clause (g), (p), (q), (r), (v), (w), (za), (zm), (zp), (zy), (zzd), (zzg), (zzh), (zzi), (zzk), (zzq) and (zzr) of clause (105) of section 65 of the Finance Act shall be allowed unless such service is used exclusively in or in relation to the manufacture of exempted goods or providing exempted services" From the above, we observe that Rule 6(5) is an excepti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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