2021 (3) TMI 778

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....nt is not maintaining separate account of inputs/input service used for providing exempted and taxable service, therefore, they are liable to reverse the cenvat credit in terms of provisions of Rule 6(3) of the Cenvat Credit Rules, 2004. (b) A demand of Rs. 93,206/- has been confirmed for the reason that the appellant has not provided any documentary evidence such as C.A. certificate with regard to payment of service tax, which is the claim of the appellant that on these exempted services, they have paid service tax. (c) A demand of Rs. 87,036/- has been confirmed for the reason that the appellant has cleared inputs as such but has not reversed the cenvat credit availed on these inputs and no documents have been provided by the appellan....

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....e 2(e) has defined 'exempted service' w.e.f. 20.06.2012. The same is reproduced herein as under:- "(e) ― "exempted service" means a - (1) taxable service which is exempt from the whole of the service tax leviable thereon; or (2) service, on which no service tax is leviable under section 66B of the Finance Act; or (3) taxable service whose part of value is exempted on the condition that no credit of inputs and input services, used for providing such taxable service, shall be taken; [but shall not include a service - (a) which is exported in terms of rule 6A of the Service Tax Rules, 1994]" On going through the said provision, I find that as per Rule 2(e)(1), the taxable service, which is exempt from the whole of the service ....

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....ra), this Tribunal has examined the issue in details and examined the definition of 'exempted service' under Rule 2(e) of the Cenvat Credit Rules, 2004 and held that Section 64 of the Finance Act is not applicable to the state of Jammu & Kashmir. 6.1 In these circumstances, I hold that the appellant is providing taxable service and not any exempted service in the state of Jammu & Kashmir, for which reversal of the cenvat credit is sought by the Revenue, therefore, the provisions of Rule 6(3) of the Cenvat Credit Rules, 2004 are not applicable to the facts of this case. In view of this, I hold that the appellant is correctly taken the cenvat credit of Rs. 4,59,963/- for the services provided in the state of Jammu & Kashmir. 6.2 The Cenvat ....