TaxTMI 
TaxTMI 
2010 (6) TMI 230
X X X X Extracts X X X X
X X X X Extracts X X X X
....s as well as provider of output services under the categories of Consulting Engineer, Erection-Commissioning & Installation Service, Maintenance & Repair Service etc. On scrutiny of records, it was revealed that the appellants had availed and utilized CENVAT credit on account of Service Tax in respect of certain taxable services consumed by them in the course of their business activity. A show-cause notice denying credit in respect of these taxable services on the ground that these were not 'input services' eligible for service tax credit in terms of Rule 2(1) of the Cenvat Credit Rules, 2004. The demand was confirmed by the adjudicating authority on the ground that the appellants were asked to provide segregation of total Service Tax credi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s and filed detailed reply of the show-cause notice that the above services have used in the manufacturing activity and for providing output services in or in relation to their business activity. He further submitted that the issue involved is with regard to interpretation of the statute, the penalty also is not leviable on the appellants. In view of the above, he prayed that the appeals may please be allowed. To support his contention he placed reliance on the following case laws: (i) Vardhman Spg. & Gen. Mills Unit-I v. Commissioner of Central Excise, Ludhiana - 2008 (10) S.T.R. 109 (Tri.-Del.). (ii) Mahindra Ugine Steel Co. Ltd. v. Commissioner of Central Excise, Raigad - 2008 (12) S.T.R. 159 (Tri.-Mum.). (iii) Commissioner of C....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., CENVAT credit taken and utilized, the per son from whom the input or capital goods have been procured is recorded and the burden of proof regarding the admissibility of the CENVAT credit shall be upon the manufacturer or provider of output service taking such credit." To avail CENVAT credit, the manufacturer have to maintain proper records for the receipt and consumption of the input services in which the relevant information regarding the value, tax paid, CENVAT credit taken and utilized is recorded and the burden of proof lies on the appellants. In the impugned order before me, the Commissioner (Appeals) has observed that these input services could have been used for non-official purpose by the employees as perquisites reimbursed by ....