National Aviation Co. of India Ltd. Versus Commissioner of GST & Central Excise, Chennai South
Service Tax
2017 (11) TMI 256 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 1-11-2017
ST/Misc. /40999/2017 and ST/54/2008 – Final Order No. 42514 / 2017
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri P. Ravindran, Advocate for the Appellant
Shri S. Govindarajan, AC (AR) for the Respondent
ORDER
Per Bench
The appellants are engaged in the business of providing services in relation to transport of goods and passengers by airport services etc. They have been rendering both taxable as well as exempted services during the period of dispute from September 2004
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ant, the adjudication authority vide the impugned order confirmed recovery of the alleged excess utilization of credit amounting to Rs. 58,06,851/- along with interest liability thereof. Aggrieved the appellants are before this forum.
2. Today, when the matter came up for hearing, ld.counsel Shri P. Ravindran submits that it is not the case that they had utilized more than 20% of the credit eligible to them for the period September 2004 to March 2005. However, during such period, the tax liability on the taxable output services were discharged by them through cash and the eligible 20% credit amount was not utilized that period. Such quantum of earned credit not utilized earlier was subsequently utilized by them for discharge of tax liabili
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e is entitled to utilize the CENVAT credit to the extent of 20% and that it has not disputed that they had utilized credit more than the permissible limit. The adjudicating authority has also observed that “the credits that were not utilized as on 31.3.2005 will not lapse and the assessee can utilize the CENVAT credit towards future payment of service tax”. We are unable to fathom having reached such a conclusion the adjudicating authority then takes a U turn holds that such utilization is on the restrictions imposed under Rule 6(3) of the CENVAT Credit Rules as was in force during the material time. However, a perusal of Rule 6(3)(c) indicates that there is no such restriction that 20% credit earned should be utilized within a particular p
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