Venkateswara Steel & Springs (India) Pvt. Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, allowed the appeal filed by Venkateswara Steel & Springs (India) Pvt. Ltd. against the Commissioner of GST & Central Excise in a dispute concerning applicability of Rule 6(3) of the CENVAT Credit Rules, 2004 (CCR).
The appellant was engaged in payment of service tax under reverse charge mechanism for GTA services and also carried out job work activities involving coiling of steel wires supplied by principal manufacturers such as Lakshmi Machine Works (LMW) and Bharat Heavy Electricals Ltd. (BHEL). The department alleged that the appellant had not paid service tax on job work charges under the category of “Business Auxiliary Service” prior to 30.06.2012 and as taxable service from 01.07.2012 onwards while claiming exemption under Notification No. 8/2005-ST dated 01.03.2005.
The Revenue further alleged that the appellant had availed CENVAT credit on common input services such as GTA and consultancy services but had not paid 5% or 6% of the value of exempted services as required under Rule 6(3)(A) read with Rule 6(2) of the CENVAT Credit Rules, 2004 during the period from 2010-11 to 2013-14.
