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TMI Blog2022 (10) TMI 1077X X X X Extracts X X X X X X X X Extracts X X X X ..... ch 2012 for a total value of Rs.2,22,75,660/- and discharged Service Tax of Rs.26,68,059/- by utilizing CENVAT Credit on inputs, capital goods and input services, which was available to them as a manufacturer of those goods under the Central Excise Act, 1944. Show Cause Notice dated 14.07.2015 was issued alleging wrong utilization of CENVAT Credit towards payment of Service Tax on output services. A detailed reply dated 14.08.2015 was filed by the Appellant denying the allegations leveled in the Show Cause Notice. However, the Assistant Commissioner of Central Excise, Customs & Service Tax, Rourkela-II Division disallowed the CENVAT Credit of Rs.26,68,059/- under Rule 14 of the CENVAT Credit Rules, 2004 read with Section 11A of the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ineers v. Commissioner of Central Excise [2015 (38) S.T.R. 614 (Tri.-Mum.)] affirmed by the Hon'ble Bombay High Court in 2016 (42) S.T.R. 3 (Bom.)]. The Ld.Advocate further submits that there is no statutory requirement of one to one co-relation or nexus between activities of payment of Service Tax against the CENVAT Credit availed on input, capital goods and input services. 3. The Authorized Representative for the Department reiterated the findings of the Order-in-Original and justifies the impugned order. 4. Heard both sides and perused the appeal records. 5. As submitted by the Ld.Advocate, the Finance Minister in his Budget Speech stated as follows: 148. There remains the service tax. I propose to take a major step towards integrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utilisation of credit is permissible. C.B.E. & C. vide Letter F. No. 381/23/2010/862, dated 30-3-2010, clarified that Cenvat credit on inputs, capital goods and input services which are used for manufacture of goods or for provision of services is available in a common pool and can be used for payment of Excise duty and/or Service Tax. Credit accumulated by the service provider or manufacturer on the input services availed as well as inputs is available for payment of Excise duty or Service Tax. Any contra view taken would defeat the very scheme of credit. It has been held in numbers of cases that as far as the inputs or input services are availed on payment of duty and as long as they are capable of being used in the provision of Service T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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