2018 (11) TMI 1459

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lants is laying of pipelines for transportation of petroleum products for various petroleum companies. Pursuant to audit conducted by the Department, it appeared that in a few projects the appellants were availing exemption under Notification No. 15/2004-ST dt. 10.09.2004 and Notification No. 01/2006-ST dt. 01.03.2006 which exempted taxable service whereby service tax was required to be paid only on 33% of the gross amount whereas on other projects appellants were paying service tax on the entire gross amount without availing such exemption Notifications. It further appeared that appellants had taken credit of duty on capital goods and other inputs and input services during the year 2006-07; however, as per the Notification No. 15/2004-ST, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hat the impugned Notification does not stipulate a condition where non-availment of CENVAT Credit is to be satisfied uniformly in all cases. (ii) Appellant also places reliance on the decision of C.C.E. Vs. Nebulae Health Care Ltd. - 2015 (325) E.L.T. 431 (S.C.) wherein the Hon'ble Supreme Court held that simultaneous availment of SSI exemption and CENVAT Credit is permissible. The Court observed that when goods bearing the brand name of others are manufactured, such goods are outside the purview of SSI Notification and thus, the embargo contained in the Notification will not be applicable. (iii) The impugned Order has also admitted, at Paragraph No. 5.8, that the requirement of the condition of non-availment of CENVAT Credit is servi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Larsen and Toubro Ltd., 2015 (39) S.T.R. 913 (S.C.), wherein the Hon'ble Supreme Court has held that indivisible works contract entered on turnkey basis is not taxable prior to 01.06.2007. (viii) The Department was always aware of the various activities undertaken by the appellant. The issue is also one of interpretation and the appellant has no intention to evade payment of tax and there is no element of fraud, etc. (ix) No penalty is imposable in the facts and circumstances of the case. The matter involves substantial question of interpretation. In any case, Section 80 of the Finance Act, 1994 provided for waiver of penalties. 3. On the other hand, Ld. AR Shri. K. Veerabhadra Reddy supported the findings in the impugned Order. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ment of CENVAT Credit on the input/capital goods/input service which were used for the provision of services for which the service tax was paid by availing the exemption contained in the notifications ibid." In para 5.7, the adjudicating authority observes that "as pointed out by me the Show Cause Notice and the assessee have taken the same view that the notification is service specific only and I am also in agreement with the same." The adjudicating authority proceeds on this tangent and holds that the appellant have not proved with any documentary evidence that they have not availed or taken the CENVAT Credit on the inputs/capital goods/input service in such cases for which they availed abatement. We therefore find merit in the contention....