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TMI Blog2018 (12) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... e premises has been used for trading activity or for depot purpose only. The ratio of depot sale to manufacturing sale is applicable when the credit has been held to be inadmissible for the entire premise which was the case of the department in the show cause notice. Since the Appellant has availed a total amount of ₹ 10,38,070/- as input service tax credit for this renting of immovable property service, therefore 6.09% of the said amount i.e. ₹ 63,219/- is only ineligible for credit since that was used for trading activity and not for the manufacturing purpose - the matter needs correct quantification of demand to be recovered from the appellant. Appeal disposed off by way of remand. - APPEAL NO: E/87070/2018 - A/8804 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of ₹ 62,806/- pertains to Cenvat Credit on Manpower Supply, Chartered Accountant Service, Repair Maintenance and GTA service. The period involved in this Appeal is between April, 2011 to October, 2013. According to the department since the appellant has suppressed the facts from the knowledge of the department with intent to avail inadmissible Cenvat credit to pay excise duty, therefore the extended period has been invoked and penalty in terms of Rule 15(2) of Cenvat Credit Rules, 2004 has been imposed. The Additional Commissioner vide Order-in-Original dated 25.6.2017 disallowed the Cenvat Credit of ₹ 11,00,877/- in terms of Rule 14 of Cenvat Credit Rules, 2004 r/w Section 11A of Central Excise Act, 1994 along with int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/-, an amount of ₹ 63219/- (Rs. 1038070/- x6.09%) pertains to the trading area. I find sufficient force in this contention of the appellant primarily for the reason that the rent amount is solely dependent on the area given on lease. Hence, the said amount of Cenvat credit of ₹ 63,219/- is required to be disallowed in this regard. In order to support his calculation the appellant has filed the table which is as under:- Cenvat credit proposed to be dis-allowed as per Show Cause Notice Inadmissible Cenvat on credit renting based on the area used for depot i.e. @6.09% Inadmissible Cenvat credit availed on miscellaneous input services Eligible Cenvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment has quantified the inadmissible Cenvat credit on the basis of ratio of sales turn-over of each activity. The ratio of depot sale to manufacturing sale is applicable when the credit has been held to be inadmissible for the entire premise which was the case of the department in the show cause notice but it was not accepted by the ld. Commissioner. According to me once the ld. Commissioner has accepted the contention of the appellant that only the amount of ₹ 63,219/- out of the disputed credit amount of ₹ 10,38,070/- is required to be disallowed for the renting of immovable property service then there was no need to go into the ratio of trading activity towards manufacturing turnover. Nor any justification has been given by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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