2024 (9) TMI 240

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....ng "Health Club and Fitness Services" and "Beauty Parlour Services". Apart from the Health Club and Fitness Services and Beauty Parlour Services, VLCC Healthcare Ltd. is also engaged in selling the cosmetic products to its customers. During the course of Audit for the period from April 2016 to June 2017, it was observed that the Appellant had claimed a total CENVAT credit of CVD amounting to Rs.3,99,180/- on the strength of invoices issued by the Gurgaon Head Office which is duly registered under the service tax laws as Input Service Distributor ISD. It was alleged by the audit team that the Appellant had not reversed the proportionate amount of common CENVAT Credit as is attributable to the trading of the goods i.e. exempted services. A Sh....

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....' has to be taken in terms of Rule 6 of the CENVAT Credit Rules, 2004 inserted vide Finance Act 2011 w.e.f. 01.04.2011. Accordingly, the value of exempted services for the purpose of Rule 6(3A) shall be the original value i.e. the difference between the sale price and cost price of the goods sold or 10% of cost price, whichever is more. As such, the Appellant has considered the marginal value, it being more than 10% of the cost price and accordingly, computed the value of exempted service. 4. The learned Departmental Representative has supported the finding of the impugned order. He further submitted that though the Appellant have contended that they have maintained separate accounts for inputs used for providing taxable services as well....