9911796707
TMI Blog2018 (4) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturing excisable goods which are exempted from duty in terms of Notification No. 50/2003 - CE. The adjudicating authority vide order dt. 28.08.2014 confirmed the demand in terms of Rule 14 of Cenvat Credit Rules readwith Section 73 (2) of the Finance Act, 1994 and ordered for recovery of said amount. Hence the present appeals before us. 2. Shri Rajesh Ostwal appearing for the Appellant submits that the Appellant is mere Input Service Distributor and has himself did not avail cenvat credit hence the recovery in terms of Rule 14 is not sustainable. He relies upon the judgment of Tribunal in their own case for the previous period as reported in 2017 - TIOL - 2364 - CESTAT - MUM and Godrej Boyce Mfg. Co. Ltd. Vs. CCE, MUMBAI - II 2014 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the head office of various manufacturing unit and have distributed the input service to different factories. The show-cause notice was issued and adjudicated against the appellant. Demand was confirmed under Rule 14 of Cenvat Credit Rules which reads as under:- " 14. Recovery of CENVAT credit wrongly taken or erroneously refunded .- (1) (i) Where the CENVAT credit has been taken wrongly but not utilised, the same shall be recovered from the manufacturer or the provider of output service, as the case may be, and the provisions of section 11A of the Excise Act or section 73 of the Finance Act, 1994 (32 of 1994), as the case may be, shall apply mutatis mutandis for effecting such recoveries; (ii) Where the CENVAT credit has been taken and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttention is drawn to Rule 14 of the Cenvat Credit Rules, 2004 which stipulates that "Where the cenvat credit has been taken and utilised wrongly or has been erroneously refunded, the same along with interest shall be recovered from the manufacturer of the provider of the output service and the provisions of section 11A and 11AA of the Excise Act or Section 73 and 75 of the Finance Act shall apply mutatis mutandis for effecting such recoveries." 3. Since there is no other provision for recovery, it is evident that recovery can be made only from the manufacturer or service provider. There is no provision in the Cenvat Credit Rules, 2004 for issuing SCN's to ISD's. This position is unambiguous and hence could have been pointed out by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 34,70,614/- allegedly wrongly availed by the appellant and distributed by IOC-AFS during the period 1-4-2010 to 31-3-2012, in contravention of Rules 2(l), 2(m) and 7 of the Cenvat Credit Rules, 2004; directed recovery of this amount; and imposed penalty of equal amount under Rule 15 of the Rules, for contravention of specified rules. The petitioner is an input service distributor. Cenvat credit was distributed to the manufacturer of High Speed Diesel viz. IOC, Panipat Refinery. 2. Identical proceedings were earlier initiated by way of two show cause notices, dated 21-9-2010 covering the period 2005-2006 to 2009-2010. These proceedings were however dropped by the Commissioner by the order dated 27-8-2012 on the ground that the demand for r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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