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TMI Blog2014 (11) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... are not only a manufacturer of excisable goods but also the provider of output services and both the activities are carried out in the same premises. Once it is held that the respondents are eligible for availment of input credit, they can utilize the cenvat credit available with them either for payment of excise duty on the final products or for payment of service tax on the output services as stipulated in the sub-rule (4) of Rule 3 of CCR 2004. The restrictions on utilization of cenvat credit stipulated in the CCR relates only for specific type of duties i.e. education cess on excisable goods or payment of educational cess on output services. There is no restriction for utilization of common input credit availed on the inputs and al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained in work in progress and finished goods as on 31.3.2006. Even after the reversal of credit, they had the balance of credit in their cenvat credit account. The respondents have utilized the Cenvat credit for payment of service tax liability on their output services rendered by them from the same premises. A show cause notice dated 02.01.2008 was issued for disallowing cenvat credit alleged to have been lapsed and wrongly availed by respondent. 3. On adjudication, the adjudicating authority confirmed the demand of ₹ 20,44,436 + ₹ 58,789/- along with interest and also imposed penalty. Aggrieved by this order, the respondent filed appeal before Commissioner (Appeals) and he allowed the appeal and set aside the adjudicating a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit is not under dispute, there is no bar on utilization of credit for payment of service tax on output services. He also submits that as per Rule 3(4) of CCR, cenvat credit can be utilized for payment of duty of excise on any final product or payment of service tax on output services. He relies on the following case law:- (i) CCE Coimbatore Vs Lakshmi Technology Engineering Indus. Ltd. - 2011 (23) S.T.R. 265 (Tri.-Chennai) (ii) S.S Engieers Vs CCE Pune - 2013-TIOL-1512- CESTAT-MUM. He submits that they are eligible to utilize the credit availed on the inputs for manufacture of excisable goods towards payment of service tax on output service as there is no one to one correlation. 6. I have carefully considered the submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vat credit stipulated in the CCR relates only for specific type of duties i.e. education cess on excisable goods or payment of educational cess on output services. There is no restriction for utilization of common input credit availed on the inputs and also on input services for payment of excise duty or service tax. 9. The identical issue has been dealt with by the Tribunal in the case of Lakshmi Technology Engineering Indus Ltd. (supra) and in the case of SS Engineers (supra). The Tribunal's order in the case of SS Engineers Vs. CCE, Pune-I (supra), is reproduced herein below:- 5. We have considered the rival submissions. We have gone through the CENVAT Credit Rules. We find that Rule 2 defines input, input s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e restrictions do not cover cross utilization of credit of excise and service tax, as a general proposition. 6. We have also gone through the various case law quoted by the learned counsel for the appellant and we note that in the case of CCE, Pune vs. Lakshmi Technology and Engineering Industries Ltd. (supra) in para 6 has observed as under: 6. I have carefully considered the submissions from both sides and perused the records. Rule 3(1) of the CENVAT Credit Rules permits credit to a manufacturer of final product or a service provider of taxable service. If a person manufactures only excisable goods, he is entitled to take credit of not only excise duties paid on capital goods and inputs but also additional duty of cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of service tax on any output service. The respondent is undisputedly registered as a service provider for providing the services of renting of immovable property. The credit taken by them as manufacturer / service provider has been used both for paying excise duty and for paying service tax. The rules permit taking of credit under a common pool and permit use of the credit from the common pool for different purposes and there is no restriction placed to the effect that credit accounts should be maintained for use for manufacture of excisable goods and for use for providing services. Therefore, the view taken by the Commissioner (Appeals) cannot be faulted. The clarification sought to be relied upon by the Department that input credit servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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