TIDEL PARK LTD. Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) THE authorities below have held that the assessee herein who is providing taxable services such as 'Mandap Keeper' and 'Health club and Fitness centre' as well as non -taxable service of leasing out immovable property is entitled to avail credit only upto the extent of 35% upto 10 -9 -2004 and 20% thereafter in terms of Rule 6(3)(c) of Cenvat Credit Rules, 2004.

(2.) I have heard both sides and find merit in the submission of the assessees that they are entitled to the whole of the credit of the service tax paid on taxable service as specified in 17 specified categories covered by Rule 6(5) as such service is not used exclusively in or in relation to the providing of exempted services. Rule 6(5) is a non obstante Clause and therefore completely widens the restriction contained in Rule 6(3)(c). It is not the case of the Revenue that the taxable service on which service tax has been paid is not one of 17 categories specified in Rule 6(5) of Cenvat Credit Rules, 2004. I, therefore, set aside the impugned order by accepting that the assessees are entitled to entire credit, and allow the appeal with consequential relief due to the appellants in accordance with law.