2015 (1) TMI 636

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..... iling the facility of cenvat credit in respect of the duty paid on input/capital goods and service tax in terms Cenvat credit Rules, 2004. During the course of audit on the books and accounts maintained by the appellant for the period 10/2008 to 07/2010, it was observed that the appellant were removing coal as such from their factory, without using the same in the process of manufacture. They had availed credit of service tax paid on inward transportation at the time of receipt of the same. In terms of rule 3(5) of the Cenvat credit Rules, 2004, the appellant had to reverse proportionate credit involved on as such removal of raw materials (coal), but the appellant did not reverse the same. The amount of service tax credit taken on the whole .....

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..... ue involved in the appeal is regarding availability of service tax credit on GTA service attributable to inputs rejected after processing based on CESTAT judgement in the case of Chirakoot Steel & Power Pvt.Ltd. vs. CCE, Chennai-2008 (10) STR 118 (Tri.-Chennai) wherein it was held that there is no 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 Rules, 2004 provides for recovery of cenvat credit availed or utilized wrongly. 6. In the present case, there is no imputation that the service tax credit has been availed or utilised wrongly. Further there is no provision in the Finance Act, 1994 which would render availment of such .....

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..... he Cenvat credit taken on inputs or capital goods. It does not refer to the Cenvat on input service, whereas Rule 5, on which reliance is sought to be placed by the Revenue, specifically talks about the Cenvat credit on any input or input service used in the manufacture of final product. This rule pertains to refund in case of exports, which stands altogether on different footings. Once the rule-making authority has defined the terms specifically and used the same in different provisions consciously, the argument of learned counsel for the Revenue that merely by analogy even if in one provision both the terms have been used, the same should be read in the other provision as well, where it has not been specifically mentioned, has no legs to .....

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