2020 (3) TMI 523 - AT - Central Excise

Interpretation of statute - Rule 6(3A)(c)(iii) of Cenvat Credit Rules, 2004 - whether in the formula prescribed under Rule 6(3A)(c)(iii) of Cenvat Credit Rules, 2004, the total Cenvat credit mentioned therein relates to only total common credit availed on inputs/input services or whether total Cenvat credit? - HELD THAT - The said issue stands decided by the Tribunal in the case of CCE ST, Rajkot Vs M/s. Reliance Industries Ltd., 2019 (3) TMI 784 - CESTAT AHMEDABAD - It was held therein that total Cenvat credit for the purpose of formula under Rule 6(3A) is only total credit of common input services and will not include the Cenvat credit on inputs/input services exclusively used for the manufacture or procurement of goods. The demand cannot sustain - Appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT CHENNAI ruled that total Cenvat credit for the formula under Rule 6(3A) includes only common input services credit, not credit on inputs exclusively used for goods. The decision was based on previous cases. The demand was not sustained, and the appeal was allowed with consequential relief.