Case Law Details
CESTAT decision in the case of Orion Appliances Ltd Vs. CST, Ahmedabad (2010-TIOL-752-CESTAT?
AHM)
Brief Facts:- Orion Appliances Ltd (hereinafter referred to as the „appellant?) was engaged in providing maintenance and repair and commissioning and installation services. The appellant was also engaged in trading activities. The appellant availed CENVAT credit of service tax paid on various input services including advertising, security, courier, telephone and banking services which were used in provision of taxable output services as well as for trading activities.
The appellant utilised the entire credit of service tax on such input services against it?s service tax liability on output services. The revenue contended that the appellant had not kept separate records for CENVAT credit attributable to taxable and exempt services and therefore had availed and utilised excess credit than permitted in terms of Rule 6(3) of the erstwhile CENVAT Credit Rules, 2004 and Rule 3(5) of the erstwhile Service Tax Credit Rules, 2002 since the services were not entirely used for providing taxable output services and such excess credit was therefore liable to reversal as per the Rule 6(3) and Rule 3(5) ibid.
Contentions of the Appellant
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The dept. should not have gone for 6(2) and 3(4). The appellant is not eligible to avail the credit intoto in as much as the same has not been used for rendering an output service. In my opinion Tribunals view is corrent and in order