Service Tax : If, while providing services there is sale of raw materials/inputs, same will amount to clearing of inputs as such on which CENVAT Credit is required to be reversed at time of clearance as per CENVAT Credit Rules, 2004
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[2014] 50 taxmann.com 434 (Ahmedabad - CESTAT)
CESTAT, AHMEDABAD BENCH
Aims Industries Ltd.
v.
Commissioner of Central Excise Daman*
M.V. RAVINDRAN, JUDICIAL MEMBER
AND H.K. THAKUR, TECHNICAL MEMBER
ORDER NO. A/11325/2014
APPEAL NO. ST/11921/2014-DB
APPLICATION NO. ST/STAY/13085/2014
JULY 8, 2014
Section 65(64), read with section 67, of the Finance Act, 1994 and rule 3 of the Cenvat Credit Rules, 2004 - Taxable Services - Management, Maintenance or Repair Services - Assessee was supplying valves in course of repair and maintenance of gas cylinders - Assessee was taking credit of duty paid on valves - Department included value of valves in value of services - Assessee argued that it was paying VAT on supply of valves and, therefore, same was not includible in value of services - Department argued that since credit had been taken on valves, exemption under Notification No.12/2003-ST, dated 20-6-2003 could not be allowed - HELD : It was not clear from invoices whether VAT was paid on sale of valves as claimed by assessee - Even if it is accepted that while providing services there is sale of valves, same will amount to clearing of inputs as such on which CENVAT Credit is required to be reversed at time of clearance as per CENVAT Credit Rules, 2004 - Hence, matter was remanded back for verification in this regard [Para 4] [Matter remanded]
Rule 3 of the Cenvat Credit Rules, 2004 - CENVAT Credit - Removal of Inputs/Capital Goods - If, while providing services, there is sale of raw materials/inputs, same will amount to clearing of inputs as such on which CENVAT Credit is required to be reversed at time of clearance as per CENVAT Credit Rules, 2004 [Para 4] [In favour of revenue]
Circulars and Notifications : Notification No.12/2003-ST, dt.20-6-2003
■■■
[2014] 50 taxmann.com 434 (Ahmedabad - CESTAT)
CESTAT, AHMEDABAD BENCH
Aims Industries Ltd.
v.
Commissioner of Central Excise Daman*
M.V. RAVINDRAN, JUDICIAL MEMBER
AND H.K. THAKUR, TECHNICAL MEMBER
ORDER NO. A/11325/2014
APPEAL NO. ST/11921/2014-DB
APPLICATION NO. ST/STAY/13085/2014
JULY 8, 2014
Section 65(64), read with section 67, of the Finance Act, 1994 and rule 3 of the Cenvat Credit Rules, 2004 - Taxable Services - Management, Maintenance or Repair Services - Assessee was supplying valves in course of repair and maintenance of gas cylinders - Assessee was taking credit of duty paid on valves - Department included value of valves in value of services - Assessee argued that it was paying VAT on supply of valves and, therefore, same was not includible in value of services - Department argued that since credit had been taken on valves, exemption under Notification No.12/2003-ST, dated 20-6-2003 could not be allowed - HELD : It was not clear from invoices whether VAT was paid on sale of valves as claimed by assessee - Even if it is accepted that while providing services there is sale of valves, same will amount to clearing of inputs as such on which CENVAT Credit is required to be reversed at time of clearance as per CENVAT Credit Rules, 2004 - Hence, matter was remanded back for verification in this regard [Para 4] [Matter remanded]
Rule 3 of the Cenvat Credit Rules, 2004 - CENVAT Credit - Removal of Inputs/Capital Goods - If, while providing services, there is sale of raw materials/inputs, same will amount to clearing of inputs as such on which CENVAT Credit is required to be reversed at time of clearance as per CENVAT Credit Rules, 2004 [Para 4] [In favour of revenue]
Circulars and Notifications : Notification No.12/2003-ST, dt.20-6-2003
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