2018 (2) TMI 1262

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....ated services. They were registered with the department and discharging service tax under various categories. Certain proceedings were initiated against the appellant assessee for not following the provisions of Rule 6(3) of Cenvat Credit Rules 2004. The appellant assessee provided taxable as well as exempted services which calls for maintenance of separate accounts on credit availed on input services. Failing which option is to be exercised in terms of Rule 6 (3) to pay the percentage of value of exempted service or reverse the credit proportionate to the value of exempted service. Contending that the appellant assessee did not follow the procedure properly under the said rule, the Revenue initiated action for reversal of credit and for im....

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....R elaborating the grounds of appeal by the revenue submitted that the original authority erred in not considering the non-taxable portion of premium as consideration for exempted service while arriving at the 8 per cent classification for reversal under Rule 6(3). It is his submission that the appellant assessee is liable to pay Service Tax on the administrative charges for managing the ULIP investment, risk cover charges. These are part of premium amount. However, the investment part of the premium amount should be considered as a consideration for exempted services and the quantification of reversal of amount in terms of Rule 6(3) should have been accordingly arrived at. He submitted that the Original Authority‟s order in not consid....

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....ntinues or at the rate of 3[one per cent] of such tax, per month, whichever is higher, starting with the first day after the due date till the date of actual payment of the outstanding amount of service tax: Provided that the total amount of the penalty payable in terms of this section shall not exceed 4[fifty per cent of] the service tax payable. 7. The said section is with reference to payment of service tax in accordance to provision of Section 68 or the Rules made under Chapter V of the Finance Act, 1994. Failure to pay such Service Tax shall attract a penalty which is quantified in the said section. The amount which is ordered to be paid by the appellant assessee in terms of Rule 6 (3) cannot be considered as a Service Tax. This po....