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TMI Blog2013 (7) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... d interpretation urged by the Revenue defeats the object and purpose of the CENVAT Credit Rules - Rules cannot be interpreted in such a way so as to make them nullity - there is no reason given as to why the word “allowed” should be interpreted in a narrow way – appeal decided against revenue - ST/156/2007 - Final Order No. A/1401/2013-WZB/C-I(CSTB) - Dated:- 21-6-2013 - Shri P.R. Chandrasekharan And Shri Anil Choudhary, JJ. For the Appellant : Shri Rakesh Goyal, Addl. Commissioner (AR) For the Respondent : Shri Bharat Raichandani, Advocate PER : P.R. Chandrasekharan This is a Revenue appeal filed against Order-in-Appeal No. GOA/CEX/MP/57 dated 25/06/2007 passed by the Commissioner of Central Excise Customs (Appeals), G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng penalties. The appellants preferred an appeal before the lower appellate authority who held that once the appellants are allowed to take credit the same would include utilisation of the credit also. Accordingly, he set aside the demands and allowed the appeal. Aggrieved of the same the Revenue is before us. 3. The only ground urged in the Revenue's appeal memorandum is that taking of credit and utilisation of credit are distinct and different and, therefore, allowing of credit' would include only taking of credit and not utilisation. There is no reason given as to why the word allowed should be interpreted in a narrow way, in the appeal memorandum. 4. The learned Additional Commissioner (AR) appearing for the Revenue reiterates th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... viding some taxable services. If the restriction of 20% is applied to these services also, this basic purpose would be defeated. As regards, 'taking' of credit is concerned, that is anyway available to all input services and there would not have been any reason to select these 17 services for placing them under sub-rule (5). they have been placed in a separate sub-rule [i.e. sub-rule (5)] because in respect of utilization of credit of tax paid on these services, the restriction of 20% does not apply, while the restriction applies in all other cases. In conclusion the credit taken in respect of the services can be utilized for payment of service tax without any limit. From this clarification issued by the CBEC it becomes clear that the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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