9911796707
TMI Blog2024 (9) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... period after 1.4.2011. There is no case for department that the amount reversed is not in accordance with the formula prescribed under Rule 6 (3A) (b) of CCR, 2004. The adjudicating authority has confirmed the total common input credit. There is no provision to deny the credit of input services used for manufacturing activity. Hence the demand raised in SCN and confirmed by adjudicating authority is erroneous. The reason given by adjudicating authority for confirming the entire common input credit is that appellant has availed credit on input services exclusively used for trading. On perusal of the SCN, it is found that these are merely assumptions made on the basis of invoices. It has not been established that the appellant has availed cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... VASA SESHAGIRI RAO, MEMBER (TECHNICAL) Shri J. Shankarraman, Advocate, for the Appellant Ms. Anandalakshmi Ganeshram, Authorized Representative for the Respondent ORDER Brief facts are that the appellant is engaged in manufacture of service station equipments such as Tyre Inflator Portable, Reciprocating Pump, Lubricating Pump etc. They cleared the final products on payment of duty and also availed the facility of cenvat credit on inputs and input services under Cenvat Credit Rules, 2004. 2. The appellant is also engaged in the trading of goods such as Manual Hydraulic, 3D Wheel Aligner, Spark Plug Cleaner, Tyre Changer, Manual Hydraulic Jac etc. They are having Dealers Registration Certificate also. The appellant imports certain goods and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to include trading as an exempted service. After 1.4.2011, the appellant has been reversing the proportionate credit. Prior to such date, the appellant was under the bonafide belief that they are eligible for credit and therefore has availed the credit. However, the Department has disallowed the entire total common inputs service credit availed by the appellant which was used by the appellant for manufacture as well as trading which is erroneous. 5. Another allegation raised in the SCN is that the appellant has availed credit on input services such as GTA and CHA services used exclusively for trading activity. The appellant has not used any input services exclusively for trading. Appellant has stated in the reply to the SCN that they have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of trading prior and after 1.4.2011. There is nothing in the law which allows the assesse to avail credit or input services for trading. The appellant ought not to have taken credit in respect of input services exclusively used for trading. The appellant had not furnished details in respect of credit availed on input services which were used exclusively for trading. The adjudicating authority has noted in para 10 11 that the appellant has used GTA and CHA services exclusively for trading. However, in case of certain invoices these services have been used for manufacture also. The appellant having not provided the bifurcation, the adjudicating authority is correct in holding that appellant has availed ineligible credit. The demand has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he amount that has been reversed by the appellant for the period after 1.4.2011. There is no case for department that the amount reversed is not in accordance with the formula prescribed under Rule 6 (3A) (b) of CCR, 2004. The adjudicating authority has confirmed the total common input credit. There is no provision to deny the credit of input services used for manufacturing activity. Hence the demand raised in SCN and confirmed by adjudicating authority is erroneous. 12. The reason given by adjudicating authority for confirming the entire common input credit is that appellant has availed credit on input services exclusively used for trading. On perusal of the SCN, we find that these are merely assumptions made on the basis of invoices. It h ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
