SAMRAT FORGINGS LTD. Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) THE appellant was doing the process of heat treatment for their principals.

(2.) In some of the cases, service tax was being paid and some of the customers were paying duty on the final product and as such the appellant was not liable to pay service tax. They were availing Cenvat credit in respect of inputs as also in respect of input services and was utilising the same for payment of service tax wherever paid. Revenue entertained an objection that inasmuch as the appellants are clearing their final product on payment of service tax as also without payment of service tax, they are entitled to use only 20% of the credit as availed.

(3.) AS a consequence of payment of duty in cash, they became entitled for the credit which was utilised for payment of service tax in the past. They accordingly credited the amount of Rs. 5,81,850/ - in their credit account. This credit was done under intimation to the Revenue vide their letter dated 30 -6 -2009. The exact contents of the letter are being reproduced below: -