M/S. Tamil Nadu Newsprint and Papers Ltd. Vs. Cce, Trichy - Court Judgment |
| Customs Excise and Service Tax Appellate Tribunal CESTAT Chennai |
| Nov-11-2009 |
| S/177 of 2006, S/204 of 2007, E/679 of 2007 & E/404 of 2008 |
| THE HONOURABLE DR. CHITTARANJAN SATAPATHY, TECHNICAL MEMBER & THE HONOURABLE MR. P.K. DAS, JUDICIAL MEMBER |
| M/S. Tamil Nadu Newsprint and Papers Ltd. |
| Cce, Trichy |
| Shri S. Muthu Venkataraman, Adv., for the appellant. Shri V.V. Hariharan, JCDR, for the respondent |
.....in the first two cases, the adjudicating commissioner has ordered for reversal of the entire credit of service tax for the impugned services and in respect of the other two appeals, the adjudicating commissioner has ordered for payment of 10% of the value of the exempted goods. 2. after hearing both sides and perusal of case records, we find that the impugned orders are unreasonable and the demands on the appellants are far in excess of the credit of service tax in respect of services used in the exempted goods. hence, all the four impugned orders are set aside and with the consent of both sides, the matter is remanded to the original authority for fresh decision. he shall evolve a method to calculate the proportionate amount of service tax credit relating to the exempted goods in consultation with the appellants and thereafter the appellants shall reverse such proportionate credit. 3. all the four appeals are remanded for fresh decision in the above terms. in the circumstances of the case, where the method of calculation is uncertain, and the application of the rule is unclear, the penalties imposed are set aside.
Per: Dr. Chittaranjan Satapathy
Heard both sides. The appellants have manufactured both exempted and dutiable goods. The dispute in all these four appeals relate to availment of credit of tax on input services. It is admitted by both sides that in the first two cases, the adjudicating Commissioner has ordered for reversal of the entire credit of service tax for the impugned services and in respect of the other two appeals, the adjudicating Commissioner has ordered for payment of 10% of the value of the exempted goods.
2. After hearing both sides and perusal of case records, we find that the impugned orders are unreasonable and the demands on the appellants are far in excess of the credit of service tax in respect of services used in the exempted goods. Hence, all the four impugned orders are set aside and with the consent of both sides, the matter is remanded to the original authority for fresh decision. He shall evolve a method to calculate the proportionate amount of service tax credit relating to the exempted goods in consultation with the appellants and thereafter the appellants shall reverse such proportionate credit.
3. All the four appeals are remanded for fresh decision in the above terms. In the circumstances of the case, where the method of calculation is uncertain, and the application of the Rule is unclear, the penalties imposed are set aside.