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TMI Blog2017 (2) TMI 778X X X X Extracts X X X X X X X X Extracts X X X X ..... which is taxable under Finance Act, 1994. 2. Credit, amounting to Rs. 22,91,025/- was availed in December 2004, and a like amount was taken as credit in March 2005 besides taking and utilising credit of Rs. 14,959/- against another bill of entry filed for clearance of goods by M/s Cipla Ltd. The original authority disallowed this credit of Rs. 45,97,009/- under rule 14 of CENVAT Credit Rules, 2004 and ordered recovery under section 73 of Finance Act, 1994, along with interest, and imposed penalty under rule 15(3) of CENVAT Credit Rules, 2004 and under section 76 of Finance Act, 1994. By order-in-appeal no. MUM-SVTAX-002-APP-93-15-16 dated 15th January 2016, Commissioner of Service Tax -II (Appeals), save for reduction of penalty under rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extended to service providers. 6. An entirely new, and almost independent, scheme has been notified as CENVAT Credit Rules, 2004 straddling taxes on manufacturers and service providers; not unnaturally, there is a difference of treatment accorded to the two species of assesses owing to the distinction between the two. The cited public notice and circular have become redundant owing to the comprehensive character of the Rules. Utilisation of CENVAT credit is allowed for discharge of the two distinct levies - that on manufacture and that on rendering of services. The former is a tax on goods and the latter on intangibles. In the nature of the taxed object, discharge of excise duty is not predicated on the identity of the assessee save that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is a sine qua non. The validity of availment is predicated also upon conformity with the rule stipulating the documents that entitle an assessee to take credit. Undoubtedly, a bill of entry is valid for such purposes; nevertheless, its validity is restricted to the importer, i.e, the owner or the person who holds himself out to be the importer and has filed the bill of entry. A bill of entry is not a document of title it is merely a document of assessment. The title to goods transfers only with bill of lading; that, however, is also a valid document of title only till the 'consignee' or 'notify party' assumes custody of the imported goods. With clearance having been effected, the goods can no longer qualify as imported goods and, hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion no. 18/2013-CE (NT) that rule 2 (ij) incorporated importer issuing an invoice among the first stage dealer with appropriate safeguards. Till such amendment, CENVAT Credit Rules, 2004 did not facilitate the transfer of credit concomitant with transfer of imported goods. 11. Learned Chartered Accountant sought to place reliance on Suntech Glass Pvt Ltd v. Commissioner of Central Excise, NOIDA [2006 (199) ELT 517 (Tri-Del)], Commissioner of Central Excise v. Sunrise Chemical Industries [2010 (262) ELT 110 (Guj)], Marmagoa Steel Ltd v. Union of India [2005 (192) ELT 82 (Bom)] and Akzo Nobel Coating (India) Ltd v. Commissioner of Central Excise, Bangalore [2013 (290) ELT 108 (Tri-Bang)]. These decisions were all rendered in the context of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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