The Tribunal held that Cenvat credit is available only in relation to taxable services and not for trading activities. The case was remanded for recalculation of admissible reversal for the normal period.
The Tribunal followed its own earlier rulings in the appellant’s cases and held that the dispute was no longer open to reconsideration. The impugned order was set aside accordingly.
The dispute concerned service tax on the profit margin earned from the sale of imported gold. CESTAT held that the margin arose from trading activity and not from any consignment agent service rendered to the supplier.
The Tribunal held that services of commission agents fall within the scope of “sales promotion” under Rule 2(l) of the Cenvat Credit Rules. As a result, the demand denying Cenvat credit on sales commission services was set aside.
The Tribunal found that the dispute could only be resolved through a detailed reconciliation of journal vouchers and tax returns. The matter was remanded to the adjudicating authority for verification.
The dispute concerned Rule 6 demands on electricity transferred outside the manufacturing unit. CESTAT held that proportionate reversal of CENVAT credit amounts to non-availment of credit, making the demand unsustainable. The appeals were allowed and the demands, interest, and penalties were set aside.
CESTAT held that excavation, extraction, grading, and sorting of iron ore were mining-related activities and not Business Auxiliary Services. Since Mining Services became taxable only from 01.06.2007, no service tax could be levied for the prior period.
CESTAT held that operation and maintenance of drinking water plants for Nagar Nigams related to municipal water supply functions. The consideration received was therefore exempt under Entry 25 of Notification No. 25/2012-ST.
CESTAT Kolkata held that shortages of raw materials and finished goods cannot be established through mere eye estimation. The Tribunal consequently quashed excise demands, interest, and penalties based on alleged stock shortages.
CESTAT Chandigarh held that various disputed services qualified as input services under Rule 2(l) of the Cenvat Credit Rules, 2004. The Tribunal ruled that services having a direct or indirect connection with manufacturing were eligible for Cenvat credit.
