TDK India Private Limited Vs Commissioner of CGST & Excise (CESTAT Kolkata)
Regarding Works Contract Service, it has been observed in the impugned order that w.e.f 01.07.2012, vide Notification No. 30/2012-ST, the reverse charge mechanism for Works Contract Service was introduced. I find that this Notification is applicable to individual/partnership firm and Hindu Undivided Family (HUF). It is not applicable to corporate assessee. The Appellant herein is a Private Limited Company and the services are supplied by Private Limited Company. Accordingly, this Notification is not applicable to the present case. Further, the Ld.Commissioner (Appeals) has also referred to Notification No.26/2012-ST dated 01.07.2012 for valuation of service and abatement. This Notification is also not applicable to the facts of the present case. Therefore, the credit disallowed under the “Works Contract Service” cannot be sustained and the same is set aside.
FULL TEXT OF THE CESTAT KOLKATA ORDER
The Appellant is engaged in the manufacture of soft ferrite parts/components falling under Tariff Heading No.85051110 of the First Schedule to the Central Excise Tariff Act, 1985. Show-cause notice dated was issued to the Appellant alleging wrong availment and utilization of cenvat credit on Air Travel Agency Service, Works Contract Service and Construction Service etc. The Adjudicating Authority has confirmed the demand as proposed in the Show-cause notice and appropriated a sum of Rs.35,536/-, which was paid/reversed by the Appellant. An amount of Rs.6090/- was also paid towards the interest liability. On appeal, the ld. Commissioner (Appeals) rejected the appeal before him and upheld the adjudication order. Hence, the present appeal before the Tribunal.
2. Heard both sides and perused the appeal records.
3.1 The details in respect of the services for which Cenvat Credit was disallowed, are as under :
