9911796707
TMI Blog2020 (9) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the impugned order passed by the learned Commissioner (Appeals) - appeal allowed - decided in favor of appellant. - Excise Miscellaneous Application (Cross) No.85283 of 2019 in Excise Appeal No. 89704 of 2018, 89707 of 2018 - A/85659-85660 / 2020 - Dated:- 27-2-2020 - HON BLE MR. S.K. MOHANTY, MEMBER (JUDICIAL) Shri Roshil Nachani, Advocate for the Appellant Shri S.B. Hatangadi, Authorized Representative for the Respondent ORDER Per: S.K. MOHANTY Reversal of proportionate Cenvat credit under the formula prescribed in Rule 6(3A) of the Cenvat Credit Rules, 2004 is the subject matter of present dispute. The department has contended that for the purpose of reversal of credit, total Cenvat credit available ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipt and use of inputs/input service is allowed when such input and input service is used in dutiable final products and taxable service. However, nowhere in Rule 6 it is provided that the input or input service used in dutiable goods shall not be allowed. The Revenue is only interpreting the term total Cenvat credit provided under the formula. If the whole Rule 6(1), (2) and (3) is read harmoniously and conjointly, it is clear that Total Cenvat Credit for the purpose of formula under Rule 6(3A) is only total Cenvat credit of common input service and will not include the Cenvat credit on input/input service exclusively used for the manufacture of dutiable goods. If the interpretation of the Revenue is accepted, then the Cenvat credit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or for the provision of non-exempted services and description of such non-exempted goods removed and non-exempted services provided; (v) CENVAT credit of inputs and input services lying in balance as on the date of exercising the option under this condition; (b) the manufacturer of final products or the provider of output service shall determine the credit required to be paid, out of this total credit of inputs and input services taken during the month, denoted as T, in the following sequential steps and provisionally pay every month, the amounts determined under sub-clauses (i) and (iv), namely :- (i) the amount of CENVAT credit attributable to inputs and input services used exclusively in or in relation to the manufacture of exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut service was provided in the preceding financial year, the CENVAT credit attributable to ineligible common credit shall be deemed to be fifty per cent. of the common credit; (v) remainder of the common credit shall be called eligible common credit and denoted as G, where, - G = C - D. Explanation. - For the removal of doubts, it is hereby declared that out of the total credit T, which is sum total of A, B, D, and G, the manufacturer or the provider of the output service shall be able to attribute provisionally and retain credit of B and G, namely, eligible credit and eligible common credit and shall provisionally pay the amount of credit of A and D, namely, ineligible credit and ineligible common credit; (vi) where manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
