2021 (1) TMI 1332 - AT - Central Excise

Reversal of CENVAT Credit - formula to be adopted for reversing the applicable CENVAT credit on common input services used in manufacture of dutiable products and taxable and exempted services in terms of Rule 6 (3A)(c)(ii) of CCR, 2004 - HELD THAT - The issue is no longer res integra. Moreover, it is found that in the case of appellants themselves, this Bench has decided the issue in their favour relying on the ratio of the case of Chennai Petroleum Corporation Ltd. It is held that for the purposes of calculating the amount to be reversed under Rule 6 (3A)(c)(ii) of CCR, 2004, the appellants have rightly considered common CENVAT credit in the numerator in place of total CENVAT credit. Appeal allowed.

Summary

The case involved the formula for reversing CENVAT credit on common input services. The appellants correctly considered only common credit, not total credit, in the formula. The Tribunal allowed the appeal based on previous decisions and held in favor of the appellants.