2014 (8) TMI 858

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....ted, facts of the case is that the appellant are registered with the Service Tax for providing taxable services of Telecom. However, they were also providing service of inter unit connectivity which was exempt from payment of service Tax prior to 1.6.07. 2. The appellant were also availing the benefit of Cenvat Credit Scheme under Cenvat Credit Rules, 2004 (hereinafter referred to as "the Rules")....

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....t service avails of Cenvat credit in respect of any input or input services, provides both taxable as well as exempted services and does not maintain separate accounts in respect of both category of services, then the provider of output service is required to utilize Cenvat credit only to the extent of an amount not exceeding twenty percent of the amount of service tax payable on taxable output se....

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....o be treated as 'exempted services' in terms of Rule 2(e) of the Cenvat credit Rules 2004. Hence the present appeal. 5. The learned DR appearing for the revenue has drawn my attention to the Tribunal decision in the case of Idea Cellular Ltd. Vs. CCE, Rohtak [2009 (16) STR 712 (Tri-Del.)] and submitted that in as much as the appellant were providing dutiable as well as 'exempted serv....

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....f Cenvat Credit Rules, 2004, the services, in question, have to be treated as 'exempted services'. Accordingly, the Tribunal has held that inasmuch as the assessee was providing taxable as also 'exempted services' of Interconnection usage service they are entitled to use 20% of the Cenvat credit of service tax availed in respect of inputs and input services. 7. As such, I find tha....