𝗖𝗘𝗦𝗧𝗔𝗧 𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗮𝗻𝗱 𝗖𝗘𝗡𝗩𝗔𝗧 𝗖𝗿𝗲𝗱𝗶𝘁 𝗥𝗲𝘃𝗲𝗿𝘀𝗮𝗹 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Recovery of charges in the course of discharge of mandatory statutory functions is not subject to service tax. Additionally, reversal of the entire CENVAT credit amounts to non-availment of credit, negating recovery demands."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗔𝗽𝗽𝗲𝗹𝗹𝗮𝗻𝘁: M/s. Rajasthan Renewable Energy Corporation Limited 𝗜𝘀𝘀𝘂𝗲: Alleged wrongful availment of CENVAT credit. 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: Served as nodal agency for renewable energy, reversed CENVAT credit, disputed show cause notices on alleged false declarations and demands.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that reversal of CENVAT credit amounts to non-availment, negating recovery demands. Charges recovered during mandatory statutory functions are non-taxable, and electricity, being non-excisable, does not attract rule 6 of the Credit Rules. Appeals were allowed, emphasizing statutory obligations are exempt from service tax.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. Rajasthan Renewable Energy Corporation Limited vs. Commissioner of Central Excise, Jaipur 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗣𝗣𝗘𝗔𝗟 𝗡𝗢. 51569 OF 2015 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 10 April 2023 📜 This ruling emphasizes that activities performed under statutory obligations are exempt from service tax, and reversal of CENVAT credit nullifies recovery demands.