2018 (5) TMI 543

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....readymade garments (RMG). The levy of excise duty on the RMG was exempted as per the Notification No.11/2013-CE dated 28.2.2013. However, it was taxable prior to 28.2.2013. The appellant was undertaking manufacturing activity in a rented premise and were paying rent for manufacturing unit where final product was manufactured. The Landlord collected the rent under 'renting of immovable property' but failed to issue invoice and to collect service tax from the service recipient. The landlord availed benefit provided under Voluntary Compliance Encouragement Scheme (VCES) paid service tax and issued supplementary invoices for the rent collected for the period from March 2011 to February 2013. The appellant is out of levy of excise, preferred ref....

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.... of their PLA is not permissible. The learned counsel also submitted that the rent paid during the period from 1.3.2011 to 28.2.2013 includes the service tax also. He also submitted that once the appellant is not in a position to utilize the said CENVAT credit, they should be allowed to get the cash refund. For this submission, the learned counsel relied upon the decision of jurisdictional High Court in the case of UOI vs. Slovak India Trading Company Pvt. Ltd.: 2006 (201) ELT 559 (Kar.) wherein it has been held that Rule 5 of CENVAT Credit Rules, 2002 did not expressly prohibit refund of unutilized credit where there was no manufacture in the light of closure of factory. 5. On the other hand, the learned AR defended the impugned order a....

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....Nil‟ balance in their PLA account. The PLA account i.e., Personal Ledger Account is meant to enter the cash payments which an assessee makes to the Government Account for payment of duty. Admittedly, this balance was „Nil‟ on the day the assessee went out of excise duty regime. During the relevant period, from March 2011 to February 2013, the appellant had not paid any service tax on renting of property to the landlord. The landlord had applied for the Amnesty Scheme - Volunary Compliance Encouragement Scheme and had disclosed the rental income to the department and paid the same. Thereafter, the tax on rent was allegedly recovered from them. However, no document has been submitted. It is seen that there is no copy of supp....