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TMI Blog2018 (7) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... epair of vehicles, and Rent A Cab Service had been reversed and the Ld. Adjudicating Authority had dropped the proceedings for recovery of this cenvat credit amounting to ₹ 26,468/- but has imposed penalty of equal amount under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 78 of the Finance Act, 1994 - The CBEC instructions No.96/85/2015-CX.I dated 07.12.2015, in paragraph B.26, it has been observed that there is no provision in the present Rule 3(5) and accordingly there is no such necessity of amending Rule 3(5) for incorporating reversal of credit taken on inputs services. The appellant is not required to reverse the credit on input services that was taken along with duty paid on such inputs - appeal allowed - de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period from February 2014 to September 2015. The adjudicating authority confirmed the demand of duty of ₹ 16,58,000/- along with interest and penalty. On appeal, the ld. Commissioner (Appeals) upheld the adjudication order. Hence, the present appeal. 2. The ld. Consultant for the appellant submitted that they had reversed Cenvat credit vide debit entry serial No. 46 dated 01.11.2016 to the extent of ₹ 61,424.71, including ₹ 26,468/- availed on services that had been excluded from the definition under Cenvat Credit Rules. He also stated that the cenvatable inputs were identifiable and could be distinguished from the ones used towards exempted goods and exempted services. Further, vide debit entry serial No. 47 dated 01.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able goods or provision of taxable services. As per Rules 6(1) and 6(2) of the Rules, credit will not be permissible on inputs or input services used for the manufacture of exempted goods or provision of exempted services. 6. Rule 3(5) prescribes for payment of duty availed in respect of such inputs cleared from the factory as such. No other clarification is possible that an assessee has to reverse the credit in respect of various input services. In terms of the provisions of Rule 3(5) of the Cenvat Credit Rules, 2004 an invoice as per Rule 9 of the said Rules is also required to be issued and in terms of the proviso to sub-rule (5B) of Rule 3 of the Cenvat Credit Rules, the duty thus paid by an assessee can be taken and utilized for pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t service, the manufacturer of the final product or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in rule 9 An audit objection has been raised that Cenvat credit taken in respect of service tax paid on input services like Customs Brokers charges, Clearing and Forwarding Agencies Services (C F), GTA etc. used for procurement/transportation of inputs/capital goods, should also be reversed at the time of clearance of inputs/capital goods as such from the factory of the manufacturer. The present Rule 3(5) of the Cenvat Credit Rules, 2004 does not mention Input Services amo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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