TaxTMI 
TaxTMI 
2017 (9) TMI 421
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....confirmed against M/s Mittal Pigments Pvt. Ltd. and Cenvat credit of Rs. 21,63,000/- along with equivalent penalty has been confirmed against M/s R.G. Pigments Pvt. Ltd. 1.1 In both these appeals, main issue(s) involved being common, these appeals are being decided by this common order. 2. All the parties represented by ld. Counsels, Shri Vijay Kumar for the appellants and Shri Amresh Jain for the Revenue, have been heard. 4. The issues involved are: (i) Whether the Cenvat credit taken for the input/capital goods used for manufacturing excisable goods could be utilised for payment of service tax on the output services? (ii) What is the rate applicable for levying service tax: - whether it should be the rate as applicable on the day, w....
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....f final products or provider of taxable service shall be allowed to take credit of various duties specified in various sub-clauses therein. The specified duties among various duties include duty of excise specified in the First Schedule to the Excise Tariff leviable under the Excise Act as also Service Tax leviable under different Sections of the Finance Act, 1994. Sub-rule (4) of Rule 3 provides that Cenvat credit may be utilized for payment of various liabilities and includes any duty of excise on any final product as also Service Tax on any output service (other situations also covered under the said sub-rule, which are not relevant in the present case). Thus, we find that Rule 3 of the Cenvat Credit Rules, 2004 does not stipulate mainta....
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....ods is entitled to use the credit from a common pool to which different categories of specified Excise Duties, Customs Duty and Service Tax are allowed to be taken as credit. Similarly, a provider of taxable service is also entitled to take credit of specified Excise Duty, additional duty of Customs and Service Tax in respect of input services and utilize the credit from all these sources for the purpose of paying Service Tax. The objection by the Department is that the respondent who is both a service provider and a manufacturer should maintain two separate accounts one in respect of credit attributable to inputs, capital goods and services meant for excisable goods and credit attributable to capital goods, inputs and services attributable....
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....vice and therefore the utilization of credit taken by them is valid. 7. In addition to above, we have also gone through the format of ER-1 return and ST-3 return. Sr. No. 8 and the Table details the Cenvat credit taken and utilized. In ER-1 return, in Table at Sr. No. 8, in column (9), details about Service Tax are specifically listed. On careful analysis of the said format, the intention appears to be to permit cross utilization of the credit of Excise Duty and Service Tax." 5.2 In the light of above observations of the Tribunal and following the ratio of this decision [S.S Engineers (supra)], Cenvat credit taken for the input/capital goods used in the manufacture is allowed for payment of service tax on the output services. Therefore, t....
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....le Delhi High Court in the case of Vistar Construction (P) Ltd. Vs. Union of India - 2013 (31) STR 129 (Del.) has held that service tax is chargeable at the rate which was effective on the date of rendering of service and not the rate on which payments were received. The Hon'ble Delhi High Court in the said case observes as under: "8. Therefore, the taxable event, in so far as service tax is concerned, is the rendition of the service. That being the position, the taxable events in the present writ petition had admittedly occurred prior to 1-3-2008. At that point of time the rate of service tax applicable in respect of the services in question was 2% and not 4%, which came into effect only on or after 1-3-2008. In both the writ petitions th....
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....time of rendition of taxable service and not the rate in force on the date of receipt of payments for such services. In this regard, the Tribunal in the said case observes as under : "5. Revenue has preferred the appeal on the basis of a C.B.E. & C. letter dated 28-4-2008 which purports to state that the rate applicable to a taxable transaction shall be the rate in force at the time the service tax became chargeable, meaning the date on which the taxable payment is received. The relevant portion of the C.B.E. & C. letter is extracted in Paragraph G of the grounds of appeal and reads "the rates applicable to a taxable transaction shall be the rate in force at the time the service tax became chargeable". The grounds of appeal also refer to R....