9911796707
TMI Blog2009 (7) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat credit on inputs, capital goods and input services. During the period 1-3-2005 to 31-12-2005 they cleared the inputs as such and reversed the credit in terms of Rule 3(5) of Cenvat Credit Rules, 2004. A show cause notice dated 15-10-2006 was issued proposing to reverse the credit on input service on the transportation of goods by road amounting to Rs. 83,575/- in respect of clearance of inputs as such. The original authority con firmed the demand of Rs.82,575/- and imposed penalty of equal amount along with interest. The Commissioner (Appeals) upheld the adjudication order. 2. Learned Advocate on behalf of the appellants submits that Rule 3(5) of Rules provides reversal of credit on input or capital goods. He submits that the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to as the Cenvat credit) of- (i) the duty of excise specified in the First Schedule to the Excise Tariff Act, leviable under the Excise Act; xxx xxx xxx xxx xxx xxx xxx (ix) the service tax leviable wider Section 66 of the Finance Act; xxx xxx xxx xxx xxx xxx xxx xxx Paid on - (i) any input or capital goods received in the factory of manufacture of final product or premises of the provider of output service on or after the 10th day of September, 2004; and (ii) any input service received by the manufacturer of final product or by the provider of output services on or after the 10th day of September, 2004, xxx xxx xxx xxx xxx xxx xxx (5) When inputs or capital goods, on which CENVAT credit has been taken, are removed as such from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .R. has no force. 6. The Tribunal in the case of Chitrakoot Steel & Power Pvt. Ltd. (supra) held that there is no such provision of reversal of credit of service tax availed in relation to input or capital goods from the factory. Relevant portion of the decision of the Tribunal is reproduced below: "On a careful study or the statutory provisions, it is seen that when the credit-availed inputs or capital goods are removed from the factory of the assessee, sub-rule (5) of Rule 3 of the Cenvat Credit Rules, 2004 provides for recovery of equal amount of credit. There is no such provision to reverse credit of service tax availed in relation to such inputs or capital goods when removed from the factory. Moreover, Rule 14 of the Cenvat Credit Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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