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TMI Blog2023 (12) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... ternatives, are subject to preference on the prioritization of options. The claim of the appellant that they had apportioned input services between excisable goods and exempted service and followed up with reversal of credit to the extent attributable to the latter does not appear to have been examined in the order of the adjudicating authority. The impugned order set aside - matter remanded back to the original authority for a fresh decision after taking note of the submissions of appellant herein - appeal allowed by way of remand. - HON BLE MR C J MATHEW , MEMBER ( TECHNICAL ) And HON BLE MR AJAY SHARMA , MEMBER ( JUDICIAL ) Shri Bharat Raichandani , Advocate for the appellant Shri Bhilegaonkar Deepak , Commissioner ( AR ) for the respondent ORDER PER : C J MATHEW This appeal of M/s Atlas Copco (India) Ltd arises against order [order-in-original no. PUN-EXCUS-001-COM-013-13-14 dated 5th August 2013] of Commissioner of Central Excise, Pune I which confirmed demand of ₹ 18,03,72,274/- under rule 14 of CENVAT Credit Rules, 2004, along with interest as applicable, and imposed penalty of like amount under rule 15 of CENVAT Credit Rules, 2004 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (P) Ltd. relied upon by Sri Narasimhamurthy, it was observed : While interpreting an exemption clause, liberal interpretation should be imparted to the language thereof, provided no violence is done to the language employed. It must, however, be borne in mind that absurd results of construction should be avoided. The choice between a strict and a liberal construction arises only in case of doubt in regard to the intention of the Legislature manifest on the statutory language. Indeed, the need to resort to any interpretative process arises only where the meaning is not manifest on the plain words of the statute. If the words are plain and clear and directly convey the meaning, there is no need for any interpretation. It appears to us the true rule of construction of a provision as to exemption is the one stated by this Court in Union of India Ors. v. M/s. Wood Papers Ltd. Ors. [1991 JT (1) 151 at 155]: .....Truly, speaking liberal and strict construction of an exemption provision are to be invoked at different stages of interpreting it. When the question is whether a subject falls in the notification or in the exemption clause then it being in nature of except ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reversal of proportionate credits. We also take note of the fact that the Department has nowhere mentioned in entire proceedings that the amount of Cenvat credit reversed is not proportionate to the value of exempted services or not proper otherwise. The only ground that the appellant have not followed the laid down procedure of availing the option of Rule 6(3A) like not declaring value of turnover of exempted services in their periodic service tax return, etc., can be minor procedural lapses, but same cannot become ground for denying a substantial benefit to the appellant. 9. We are also of the view that once the proportionate reversal of the Cenvat credit has taken place, that tantamount to not availing of the input services credit of the common inputs which are going into the exempted services. While holding this view we take shelter of the decision of the Hon ble Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd. v. Collector of Central Excise, Nagpur - 1996 (81) E.L.T. 3 (S.C.). 10. We also take note of this Tribunal s decision on the same issue in case of M/s. The Oberoi Rajvilas v. Commissioner of Central Excise, Jaipur reported under 2018 (5) TMI 1715 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tent. Doubtlessly, every provider of output service or manufacturer is entitled to avail and take credit of duty/tax included in the consideration for inputs/input services so that the cascading effects of taxation are not burdened on the intermediate levels in the channel leading from manufacturer/service provider to the ultimate recipient. In order that administrative complications did not hinder this objective, the rules provide that where separate sets of accounts are not maintained, tax liability of up to 20% alone can be discharged by recourse to accumulated Cenvat credit. That the appellant has not restricted the utilisation of Cenvat credit to the stipulated limit is not in dispute; neither is it in dispute that appellant has been providing services throughout India including the State of Jammu and Kashmir, that inputs/input services have been made use of for rendering your service without distinction of the territory in which the service is rendered and that separate accounts of inputs/input services are not maintained. 8. As the Finance Act, 1994 does not extend to State of Jammu and Kashmir, output services provided there are not subject to tax. However, in the matt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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