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TMI Blog2018 (7) TMI 1950X X X X Extracts X X X X X X X X Extracts X X X X ..... sold as such. The Department directed them to reverse the proportional credit taken on GTA Service for the aforesaid inputs under Rule 3 (5) of the Cenvat Credit Rules, 2004. It is also the case of the appellants that the said rule is applicable to inputs only for capital goods and not to input service. In support of their submissions, they relied upon the following decisions:- (i) Chitrakoot Steel & Power Pvt. Ltd. Vs. CCE, Chennai reported in 2008 (10) S.T.R. 118 (Tri-Chen.). (ii) CCE, Chandigarh-I Vs. Punjab Steels reported in 2011 (21) S.T.R. 5 (P & H). (iii) Seven Star Steels Ltd. Vs. CCE & ST, BBSR-II reported in 2013 (30) S.T.R. 532 (Tri.-Kolkata) (iv) Real Ispat & Power Ltd. Vs. CCE, Raipur reported in 2016 (335) E.L.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts, as have been mentioned in the memo of appeal, are that the respondent-assessee is engaged in the manufacture of non-alloy steel ingots. It is registered under the Central Excise Act as well as for payment of service tax. Apparently finding that the assessee contravened the provisions of Rule 3(5) of the Cenvat Credit Rules, 2004 (for short, 'the Rules') while not reversing the input credit on service tax paid on transportation of goods by road, the adjudicating authority vide order dated 13-10-2006 raised a demand of ` 2,75,684/-, besides imposing equal amount of penalty. The order was confirmed in appeal by the Commissioner (Appeals), Customs & Central Excise, Chandigarh. However, the Tribunal vide its order dated 25-6-2009 reverse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods, whereas Rule 5 talks about cenvat credit on input or input service. He further referred to Rule 2(k) and (l) of the Rules to show that 'input' and 'input service' have been separately defined under the Rules, where the 'input' means certain materials, whereas the input service' means the services availed of. The submission is that once there is no provision in the Rules for reversal of the credit taken on account of input service merely on analogy, the revenue cannot direct the assessee to reverse the credit. 7. Heard learned counsel for the parties and perused the paper book. 8. The Tribunal reversed the orders passed by the lower authorities with the following observations and relying upon its earlier order passed in Chitrakoo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the judgment relied upon by the Tribunal. 10. Be that as it may, however, still even on merits, this court finds that the view as expressed by the Tribunal is strictly in conformity with the Rules. Rule 2(k) of the Rules defines 'input', whereas Rule 2(l) defines 'input service', meaning thereby both the terms have been defined independently. Rule 3 defines the term 'Cenvat credit', which includes duty paid under various enactments and also the service tax leviable under Section 66 of the Finance Act, 1994. Rule 3(5) of the Rules only talks about the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the plain, unambiguous language of the statute. Words cannot be added to or substituted so as to give a meaning to the statute which will serve the spirit and intention of the legislature. The statute should clearly and unambiguously convey the three components of the tax law i.e. The subject of the tax, the person who is liable to pay the tax and the rate at which the tax is to be paid. If there is any ambiguity regarding any of these ingredients in a taxation statute then there is no tax in law. Then it is for the legislature to do the needful in the matter." 4. By respectfully following the aforesaid decision of the Hon'ble High Court, the impugned order is modified to the extent that the demand of Service Tax along with interest is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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