9911796707
TMI Blog2014 (10) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... dit taken on common input services. This is also evident from other two factors, namely, "M", "N" which provides for taking into account, the total of the value of services provided and the total value of goods manufactured. The same principle applies in the case of determination of provisional credit required to be reversed every month. If the appellant had chosen not to avail Cenvat Credit on common input services, the liability would have been only ₹ 2.07 crore and inasmuch as the appellant has already reversed an amount of ₹ 62 lakhs (approximately), we direct the appellant to make a pre deposit of ₹ 1.40 crore within a period of eight weeks and report compliance by 18/09/2014. On such compliance, pre deposit of the balance of dues adjudged against the appellant shall stand waived and recovery thereof stayed during the pendency of the appeal - Partial stay granted. - Appeal No.E/86112/14 - Stay Order No. S/459/2014-WZB/C-II(EB) - Dated:- 18-7-2014 - P R Chandrasekharan and Anil Choudhary, JJ. For the Appellant : Mr S P Sheth, Adv., Shri S Narayan, Adv. For the Respondent : Mr Shobha Ram, Comm. (AR) JUDGEMENT Per: P R Chandrasekharan: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidering the reversal required to be made under Rule 6(3A), only the Cenvat Credit attributable to common input services alone should be taken. If this is done then the liability of appellant to reverse the credit would be only about ₹ 78,19,162/- against which the appellant has already reversed a credit of ₹ 61,76,635/-. Therefore, the balance of credit required to be reversed by the appellant would be only ₹ 16,42,527/- and therefore, stay be granted subject to pre deposit of this amount. He also relies on the decision of this Tribunal in the case of Sify Technologies Ltd., Vs. CCE ST (LTU) Chennai - ST/184/2012 wherein also a similar issue was considered and stay was granted. He also relies on the decision of this Tribunal in the case of MIRC Electronics Ltd. Vs. CCE, Thane - E/635/2012 in support of his contentions. 3. The learned Commissioner (AR) appearing for the Revenue, on the other hand, submits that Rule 6 (1) of the Cenvat Credit Rules stipulates that Cenvat Credit shall not be allowed on inputs used in the manufacture of exempted goods or exempted services. Sub-rule (2) of the said Rule further provides that separate accounts are required to be m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion for consideration is the factor P mentioned in sub-rule (3A) of Rule 6. Should it be the value of common input services credit as contended by the appellant or should it be the value of total Cenvat credit taken on input services. Sub-rule (3A) of Rule 6 of the Cenvat Credit Rules, is reproduced below: (3A) For determination and payment of amount payable under clause (ii) of sub-rule (3), the manufacturer of goods or the provider of output service shall follow the following procedure and conditions, namely:- (a) while exercising this option, the manufacturer of goods or the provider of output service shall intimate in writing to the Superintendent of Central Excise giving the following particulars, namely:- (i) name, address and registration No. of the manufacturer of goods or provider of output service; (ii) date from which the option under this clause is exercised or proposed to be exercised; (iii) description of dutiable goods or output services; (iv) description of exempted goods or exempted services; (v) CENVAT credit of inputs and input services lying in balance as on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, during the financial year and L denotes total CENVAT credit taken on inputs during the financial year minus H; (iii) the amount attributable to input services used in or in relation to manufacture of exempted goods and their clearance up to the place of removal or provision of exempted services = (M/N) multiplied by P, where M denotes total value of exempted services provided plus the total value of exempted goods manufactured and removed during the financial year, N denotes total value of output and exempted services provided, and total value of dutiable and exempted goods manufactured and removed, during the financial year, and P denotes total CENVAT credit taken on input services during the financial year; 6. From a reading of the sub-rule (3A), three factors are required for determination of the Cenvat Credit attributable to exempted goods and exempted services. The first factor is M which denotes the total value of exempted services provided plus the total of exempted goods manufactured. The second factor is N which denotes the total value of taxable and exempted services provided plus the total value of dutiable and exempted goods manufactured and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
