TaxTMI 
TaxTMI 
2026 (6) TMI 112
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....at they were covered under rule 6(5) of the Cenvat Credit Rules 2004 (CCR, 2004), though they were allegedly BAS/BSS, and failed to reverse credit attributable to exempt services, leading to excess credit of Rs. 1,07,29,311/- which was recoverable under Rule 14 of the said Rules. It was also alleged that, during the said period, the appellant wrongly claimed abatement under Notification No-01/2006-ST dated 01.03.2006 for outdoor catering, mandap keeper and GTA services while availing CENVAT credit on common inputs/input services, resulting in short-payment of service tax of Rs. 37,74,164/-. After due process the Ld. Commissioner accepted the appellant's stand on classification with respect to the violation of Rule 6(3) of the CCR, 2004, holding that the recipient's jurisdictional officers could not dispute the supplier's classification, but denied the benefit of Notification No. 1/2006-ST and accordingly confirmed the demand of Rs. 37,74,164/- with interest, and imposed penalty under Section 78 of the Finance Act, 1994 (FA, 1994). Hence, the appeal. 3. The learned Advocate Smt. Radhika Chandrasekar appeared for the appellant and Shri N. Satyanarayanan, Ld. Authorized Representat....
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....d the SCN was issue on 20.04.2013, which is more than 18 months from the normal period of demand. Further the extended period is also not invocable, there being no suppression or misstatement. The entire demand arises out of an interpretational dispute, and all material facts were available in the Appellant's records. Consequently, the demand is time-barred, and the levy of interest and penalty is wholly unsustainable. The Ld. Counsel prayed that their appeal may be allowed. Submissions on behalf of the Respondent-Revenue 3.2 Shri N. Satyanarayanan, Ld. Authorized Representative, took us through the impugned order and submitted that: A. The dispute pertains to the period 2008-09 to 2010-11. Having availed Cenvat Credit the appellant could not take the benefit of abatement under conditional notification 1/2006-ST, dated 01.03.2006. B. As per the proviso to Notification No-01/2006-ST dated 01.03.2006, the exemption shall not apply in cases where, among things, the CENVAT credit of duty on inputs or capital goods or the CENVAT credit of service tax on input services, used for providing such taxable service, has been taken under the provisions of the CCR, 200....
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....) In legal usage, interpretation denotes the judicial determination of the meaning of language employed by the Legislature, particularly where the text is said to admit of doubt, ambiguity, limitation, or competing constructions. It does not arise where the controversy is merely factual, such as appreciation of evidence, scrutiny of records, or factual inferences. Black's Law Dictionary, Ninth Edition, defines interpretation as under: "interpretation, n. (14c) 1. The process of determining what something, esp. the law or a legal document, means; the ascertainment of meaning to be given to words or other manifestations of intention. [Cases: Contracts "Interpretation, as applied to written law, is the art or process of discovering and expounding the intended signification of the language used, that is, the meaning which the authors of the law designed it to convey to others." Henry Campbell Black, Handbook on the Construction and Interpretation of the Laws 1 (1896). "There is more to interpretation in general than the discovery of the meaning attached by the author to his words. Even if, in a particular case, that meaning is discoverable with a high ....
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....). Notwithstanding anything contained in sub-rules (1), (2) and (3), credit of the whole of service tax paid on taxable service as specified in sub-clause (g), (p), (q), (r), (v), (w), (za), (zm), (zp), (zy), (zzd), (zzg), (zzh), (zzi), (zzk), (zzq) and (zzr) of clause (105) of section 65 of the Finance Act shall be allowed unless such service is used exclusively in or in relation to the manufacture of exempted goods or providing exempted services." (emphasis added) 8. Law is well settled that there is no one-to-one relationship, between input and output, in the Cenvat credit scheme [See: Collector of Central Excise, Pune Vs Dai Ichi Karkkaria Ltd. - 1999 (112) E.L.T. 353 (S.C.)]. Further service by its very nature is rendered and consumed simultaneously and it cannot be stored. Once credit is earned it can be denied only as per law. In this context, while interpreting the provision of a Notification it must be read harmoniously with the provisions of the Rules. We find that the said Rule 6(5) was in force at the relevant time of the dispute and has been omitted vide Notification No. 3/2011-C.E. (N.T.), dated 1-3-2011 with effect only from 01.04.2011 i.e. after the period und....