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TMI Blog2009 (4) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... clear that as per transitional provision under Rule 11 of the Rules, 2004, credit can be utilised in accordance with Rule 3 (4) of Cenvat Credit Rules, 2004 for payment of any duty of excise on any final product. Therefore, allegation made in the show cause notice is not correct. - As the denial of credit of Rs. 2,25,520/- is set aside and the issue involved is interpretation of provisions of law, the imposition of penalty is not warranted. Accordingly, penalties are set aside. - E/2020/2007 - 572/2009-SM(BR) - Dated:- 22-4-2009 - Shri P.K. Das, Member (Judicial) (Final Order No. 572/2009-SM(BR) dt. 22.4.2009 certified on 6.7.2009 in Appeal No. E/2020/2007) Shri Bipin Garg, Adv. for Appellants Shri S. Gautam, DR for Responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of Rule 3 (1) of Service Tax Credit Rules, 2002, the appellant wrongly availed and utilised the credit. He submits that the show cause notice issued for wrong utilisation of credit. His submission is that in terms of Rule 4 of Cenvat Credit Rules, 2004, there is no bar for utilisation of the credit on Central Excise Duty. Regarding the demand of tax of Rs. 20,501/-, he submits that the demand of tax is barred by limitation. He is not challenging the demand of Rs. 20,501.00. 3. Ld. DR reiterates the findings of the Commr. (Appeals). He submits that Rule 3 (1) of the Service Tax Credit Rules provides that the appellant is eligible to take credit on the input service falls in the same category of taxable service. He submits that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut service under these rules, and be allowed to be utilised in accordance with these rules. Rule 3 (4) of Cenvat Credit Rules, 2004 provides Cenvat Credit may be utilised for payment of: (a) any duty of excise on any final product; (b) xxxxxxxx (c) xxxxxxxx (d) xxxxxxxx (e) service tax on any output service. 6. So, it is clear that as per transitional provision under Rule 11 of the Rules, 2004, credit can be utilised in accordance with Rule 3 (4) of Cenvat Credit Rules, 2004 for payment of any duty of excise on any final product. Therefore, allegation made in the show cause notice is not correct. The Commissioner (Appeals) held that the appellant has ignored the provisions of Rule 3 (1) of the Service Tax Credit Rules, 2004 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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