AI Drafter 
TaxTMI 
TaxTMI 
2024 (8) TMI 995
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....credit only credit of Rs. 62,775/- are of certain input services like Advertisement for service camp, parts/ accessories insurance, job work contractor, sumo service parts DMS service, contractor service etc. which were used exclusively for service of vehicles i.e. authorized station service. Remaining input service credit of Rs. 9,93,689/- was attributed to other services such as Courier. Renting, Telecommunication etc. which were used both for sale of vehicles as well as for rendering services of authorized service station. It was alleged that the appellants availed of credit of all the services utilized for providing taxable service and also utilized the same for the trading activity which was not a taxable service. During the said period, total turnover of "service Activity was Rs. 1,45,83,418/- and turnover of "Trading Activity Margin' was Rs. 55,16,454/-. It was alleged that the credit of Rs. 7,20,969/- was admissible to the appellants on proportionate basis in the light of the decision of the Hon'ble CESTAT in the case of M/s Orion Appliances Ltd. Vs CST reported as 2010(05)LCX0027. Thus, the appellants have availed inadmissible input service credit of Rs. 2, 72/720/....
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....submits that in the appellant's own case for the previous period the Tribunal Vide its Final Order No. 62001/2018 decided on 19.03.2018 confirmed the demand of service tax for a normal period and set aside the demand for extended period and also set aside the penalty under Section 78 of the Finance act, 1994. She further submitted they are not liable to pay penalty under Section 76 as well as under Rule 15 of the Cenvat credit Rules because they did not have any intention to evade to pay service tax. 4.1 She further submits that the Certificate of Chartered Accountant produced by them in proof of the proportionate Cenvat Credit required to be reversed for the trading activities cannot be ignored in view of the various decisions passed by the Tribunal. 5. On the other hand, Ld. DR, reiterated the findings of the impugned order and submitted that for the earlier period 2007-08 to 2010-2011 prior to the issue of show cause notice in the instant case against which the demand of Rs. 8,50,695/- was confirmed. The same was challenged before the Hon'ble Tribunal, Chandigarh and the Hon'ble Tribunal vide Final Order No. 62001/2018 dated 19.03.2018, upheld the demand of service tax on ....
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....r considering the submissions of both the parties and perusal of the material on record we find that in the present case the period of dispute is from 01.04.2011 to 31.03.2012 vide Notification No. 03/2011-CE dated 01.03.2011, the definition of exempted service has been amended to cover trading activities. We also find that the appellant has accepted that they are required to reverse the cenvat credit on trading activities; as per the appellant the amount to be reversed comes to Rs. 2,00,455/-, whereas, as per the department, Cenvat credit required to be reversed as per the formula prescribed in rule 6(3A) amount to Rs. 2,70,184/-. In this regard, the relevant provision of Rule 6(3A) of CCR as inserted vide Notification No. 10/2008-CE (NT) dated 01.03.2008 are as under: "(3A) For determination and payment of amount payable under clause (ii) of sub-rule (3), the manufacturer of goods or the provider of output service shall follow the following procedure and conditions, namely:- (a) while exercising this option, the manufacturer of goods or the provider of output service shall intimate in writing to the Superintendent of Central Excise giving the following particula....
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....credit attributable to inputs used for provision of exempted services = (J/K) multiplied by L, where J denotes the total value of exempted services provided during the financial year, K denotes the total value of dutiable goods manufactured and removed plus the total value of taxable services provided plus the total value of exempted services provided, during the financial year and L denotes total CENVAT credit taken on inputs during the financial year minus H; (iii) the amount attributable to input services used in or in relation to manufacture of exempted goods or provision of exempted services = (M/N) multiplied by P, where L denotes total value of exempted services provided plus the total value of exempted goods manufactured and removed during the financial year, M denotes total value of taxable and exempted services provided, and total value of dutiable and exempted goods manufactured and removed, during the financial year, and N denotes total CENVAT credit taken on input services during the financial year, (d) the manufacturer of goods or the provider of output service, shall pay an amount equal to the difference between the aggregate amount determined as pe....
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.... succeeding financial year. (i) where the amount determined under condition (h) is not paid within the said due date, i.e., the 30th June, the manufacturer of goods or the provider of output service shall, in addition to the said amount, be liable to pay interest at the rate of twenty four per cent. per annum from the due date till the date of payment. Explanation I- "Value" for the purpose of sub-rules (3) and (3A) shall have the same meaning assigned to it under section 67 of the Finance Act, 1994 read with rules made thereunder or, as the case may be, the value determined under section 4 or 4A of the Central Excise Act, 1944 read with rules made thereunder. Explanation II-The amount mentioned in sub-rules (3) and (3A), unless specified otherwise, shall be paid by the manufacturer of goods or the provider of output service by debiting the CENVAT credit or otherwise on or before the 5th day of the following month except for the month of March, when such payment shall be made on or before the 31st day of the month of March. Explanation III.- If the manufacturer of goods or the provider of output service fails to pay the amount payable under sub-rule (3) o....