9911796707
TMI Blog2020 (2) TMI 1367X X X X Extracts X X X X X X X X Extracts X X X X ..... . Since, the Cenvat credit amount towards trading of goods was paid by the appellant, it has to be construed that no Cenvat credit was at all taken by the appellant in respect of the common input services. Hon ble Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd. Vs. Collector of Central Excise, Nagpur [ 1995 (12) TMI 72 - SUPREME COURT ] have ruled that on reversal of credit, the assessee cannot be said to have taken credit of duty on the inputs utilized in the manufacture of exempted final products. However, the appellant is liable to compensate the government exchequer by paying the interest amount between the period of taking Cenvat credit on the common input services and actual payment of such cenvat amount into the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , car hire charges, couriers and air travel tickets etc., and did not maintain separate accounts as envisaged under Rule 6 of the Cenvat Credit Rules, 2004. Accordingly, the department initiated show cause proceedings against the appellant, which culminated into the impugned order dated 25.03.2009, wherein the Ld. Adjudicating authority has confirmed cenvat demand of ₹ 4,83,65,919/- along with interest and also imposed penalties under Section 76 and 78 of the Finance Act, 1994. 3. The Ld. Advocate appearing for the appellant submitted that the activity of trading does not qualify as a service and therefore, there was no requirement of reversal of any common input service credit. He further submitted that the amendment made in the defi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant in respect of the common input services. In this context, the Hon ble Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd. Vs. Collector of Central Excise, Nagpur 2002-TIOL-41-SC-CX have ruled that on reversal of credit, the assessee cannot be said to have taken credit of duty on the inputs utilized in the manufacture of exempted final products. However, the appellant is liable to compensate the government exchequer by paying the interest amount between the period of taking Cenvat credit on the common input services and actual payment of such cenvat amount into the Central Government account. 7. In view of above, the impugned order is set aside and the appeal is allowed, to the extent it has confirmed the service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
