Case Law Details
B.L. Kashyap & Sons Ltd Vs Commissioner of Service Tax (CESTAT Delhi)
CESTAT Delhi held that confirmation of demand without identifying the common inputs used for both taxable as well as exempted services is unsustainable and liable to be quashed.
Facts- The appellant, M/s B.L. Kashyap & Sons Ltd. are engaged in providing Industrial Complex Construction Service and Residential Complex Construction Service, Maintenance or Repair Service, goods Transport Operation Operators and Works Contract Service exigible to service tax.
On scrutiny of the ST-3 returns submitted by the appellant, it appeared to the Department that the appellant was providing taxable as well as exempted services; they have not maintained separate records showing the credit utilized in exempted as well as dutiable services in contravention of Rule 6 (3) of Cenvat Credit Rules, 2004; they have failed to pay an amount equal to 6% of value of the exempted services for the period April 2008 to September 2008 and April 2009 to September 2009.
Accordingly two show cause notices were issued to the appellant seeking recovery of service tax of Rs. 1,32,72,624/- and Rs 6,24,35,382/- respectively. Commissioner (Adjudication), Service Tax, New Delhi confirmed the demands. Being aggrieved, the present appeal is filed.
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