2017 (12) TMI 1222

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Sh. R. K. Mishra, AR for the respondent ORDER Per: V. Padmanabhan The appeal is against the order-in-original No.2/2017 dated 23.01.2017. 2. The appellant is engaged in the manufacture of excisable goods - aluminium and articles thereof classifiable under Chapter 76 of the schedule to the Central Excise Tariff Act, 1985. The appellant has been availing cenvat credit of inputs and c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Section 66A of the Finance Act, 1994 came to be inserted. It was held that prior to this date, the appellant was not required to pay service tax on reverse charge basis and hence, will not be entitled to the cenvat credit on such service tax even though paid by them. Accordingly, he denied the credit and imposed penalty equal to such credit disallowed. However, for the period subsequent to 18.0....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....id does not have the colour of tax and hence the same is not allowable as cenvat credit. 6. Heard both sides and perused the record. 7. Section 66A of the Finance Act, 1994 was brought into the statute w.e.f. 18.04.2006. After the inclusion of such Section service tax became liable to be paid on specified services received from outside India. But the dispute is of the period prior to this da....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....id on reverse charge basis. However, the same was struck down by the Apex Court in the case of Laghu Udyog Bharti - 2006 (2) STR 276 (SC). This was overcome by Revenue by introduction of Section 66A. The legal validity of Section 66A was also upheld by the Hon'ble High Court of Bombay in the case of Indian Shipowners Association Vs. UoI -2009 (13) STR 235 (Bom.). This was also upheld by the Hon'bl....