TaxTMI 
TaxTMI 
2016 (1) TMI 768
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....le Services Sl. No. Name of the SBU Code No. 1 Access Media 11 2 Web hosting services 51 3 Forum services 59 4 Online services 13 5 Enterprise services 12 6 Cyber Café 15 7 International Business 16 8 Technology 31 TABLE-B Exempted Services Sl. No. Name of the SBU Code No. 1 Software dev & E-learning 53 TABLE - C Accounting /support services or common services received Services Sl. No. Name of the SBU Code No. 1 Finance 32 2 Human Resource 33 3 Administration 34 4 Corporate 35 3. Relying on the above 3 tables, it is submitted by Appellant that the 8 departments tabulated in Table-A provide taxable services. That is undisputed by the Revenue. The service department tabulated in Table-B does not provide any taxable service but provides exempted service. The service departments tabulated in Table-C above receive the service as input for their use and allocates credit of input tax to the departments appearing in Table-A and Table-B. 4. Appellant submits that so far as the extent of input se....
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.... output service avails of CENVAT credit in respect of any inputs or input services and manufactures such final products or provides such output service which are chargeable to duty or tax as well as exempted goods or services, then, the manufacturer or provider of output service shall maintain separate accounts for receipt, consumption and inventory of input and input service meant for use in the manufacture of dutiable 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. (3)Notwithstanding anything contained in sub-rules (1) and (2), the manufacturer of goods or the provider of output service, opting not to maintain separate accounts, shall follow either of the following options, as applicable to him, namely :- (i) the manufacturer of goods shall pay an amount equal to ten per cent of value of the exempted goods and the provider of output service shall pay an amount equal to eight p....
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....rvices provided during the preceding financial year, C denotes the total value of dutiable goods manufactured and removed plus the total value of taxable services provided plus the total value of exempted services provided, during the preceding financial year and D denotes total CENVAT credit taken on inputs during the month minus A; (iii) the amount attributable to input services used in or in relation to manufacture of exempted goods or provision of exempted services (provisional) = (E/F) multiplied by G, where E denotes total value of exempted services provided plus the total value of exempted goods manufactured and removed during the preceding financial year, F denotes total value of taxable and exempted services provided, and total value of dutiable and exempted goods manufactured and removed, during the preceding financial year, and G denotes total CENVAT credit taken on input services during the month; (c) the manufacturer of goods or the provider of output service, shall determine finally the amount of CENVAT credit attributable to exempted goods and exempted services for the whole financial year in the following manner, namely:-  ....
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....the jurisdictional Superintendent of Central Excise, within a period of fifteen days from the date of payment or adjustment, as per condition (d) and (f) respectively, the following particulars, namely:- (i) details of CENVAT credit attributable to exempted goods and exempted services, monthwise, for the whole financial year, determined provisionally as per condition (b), (ii) CENVAT credit attributable to exempted goods and exempted services for the whole financial year, determined as per condition (c), (iii) amount short paid determined as per condition (d), alongwith the date of payment of the amount short-paid, (iv) interest payable and paid, if any, on the amount short-paid, determined as per condition (e), and (v) credit taken on account of excess payment, if any, determined as per condition (f); (h) where the amount equivalent to CENVAT credit attributable to exempted goods or exempted services cannot be determined provisionally, as prescribed in condition (b), due to reasons that no dutiable goods were manufactured and no taxable service was provided in the preceding financial year, then the manufacturer of g....
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....abulated in Table-C. The input tax suffered on such services were allocated substantially to the departments in Table-A which provided taxable service and a minor part thereof to the department in Table-B. To this extent, the facts remained undisputed. Reversal of cenvat credit of Rs. 6,66,423/- taken by department in Table-B is also undisputed by Revenue. The only ground of denial of cenvat credit of Rs. 1,11,07,075/- is that the department in Table-B of appellant availed part of the cenvat credit earned by the department in Table-C. 9. A bare reading of sub-rule (2) and sub-rule (3) of the CCR 2004 makes clear that sub-rule (3) contains overriding provision which is independent in its nature irrespective of anything stated in sub-rule (1) and sub-rule (2) of CCR 2004. When sub-rule (2) is read that throws light that appellant has chosen a way of maintaining its record which enabled it to substantially allocate the cenvat credit of service tax suffered by the departments in Table-C and partly to the department in Table-B. It has complied to the provisions of sub-rule (2) of Rule 6. Once the conduct of the appellant in the manner indicated by the material facts stated above is v....