2011 (3) TMI 1224 - AT - Service Tax

Reversal of CENVAT credit taken on input and input services which have been utilized for manufacture of dutiable as well as exempted goods - Held that - As the learned Counsel submits that the issue regarding retrospective amendment which he himself undertook to provide the details to the Commissioner along with a Chartered Accounts, Certificate the impugned order is set aside and the matter is remanded back to the Commissioner to pass an appropriate order of acceptance of the details given by the appellant as regards reversal and interest. Appeal is allowed by way of remand.

Summary

Issues involved:
Reversal of CENVAT credit on input and input services utilized for manufacturing dutiable and exempted goods.

Analysis:
The appeal was filed against the order-in-original No. 04/CEX/2009 dated 05.02.2009. The issue revolved around the reversal of CENVAT credit taken on input and input services utilized for manufacturing dutiable and exempted goods. The adjudicating authority confirmed the demand, imposed a penalty equivalent to the demanded amount, and directed the appellant to pay interest on the confirmed amount.

The appellant's counsel argued that due to a retrospective amendment to Rule 6 of the Cenvat Credit Rules, 2004 by the Finance Act, 2010, they were required to reverse the CENVAT credit taken on input and input services utilized for manufacturing exempted products. They had submitted an application to the Commissioner of Central Excise, Pune I Commissionarate, providing details of the amounts attributable to input services used for manufacturing exempted goods, along with the amount paid by the appellant and interest. The appellant received communication from the Superintendent indicating that the Commissioner had accepted the application.

The Departmental Representative (DR) contended that due to the retrospective amendment, the matter needed to be reviewed by the Commissioner to verify the details. The appellant's counsel acknowledged the need for consideration of the retrospective amendment and assured to provide the necessary details to the Commissioner, including a Chartered Accountant's Certificate. Consequently, the impugned order was set aside, and the matter was remanded back to the Commissioner for issuing an appropriate order accepting the details provided by the appellant regarding reversal and interest. The appeal was allowed by way of remand.