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TMI Blog2023 (4) TMI 1389X X X X Extracts X X X X X X X X Extracts X X X X ..... r manufacture of provided services exempted and taxable services? - HELD THAT:- The formula adopted by the Appellant to arrive at the amount of reversal in terms of Rule 6(3A) of CENVAT Credit Rules, 2004 is correct. Hence, there is no short reversal by the Appellant - Reliance placed in M/S. MERCEDES BENZ INDIA (P) LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE-I [ 2015 (8) TMI 24 - CESTAT MUMBAI] where it was held that ' Rule 6 of the Cenvat Credit Rules is not enacted to extract illegal amount from the assessee. The main objective of the Rule 6 is to ensure that the assessee should not avail the Cenvat Credit in respect of input or input services which are used in or in relation to the manufacture of the exempted goods or for ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied, for the reason no inadmissible credit was distributed by the ISD. Appeal allowed. - HON BLE MR. SANJIV SRIVASTAVA, MEMBER (TECHNICAL) AND HON BLE DR. SUVENDU KUMAR PATI, MEMBER (JUDICIAL) Shri Rajesh Ostwal, Advocate, For the Appellant Shri Sunil Kumar Katiyar, Assistant Commissioner, Authorized Representative For the Respondent PER: SANJIV SRIVASTAVA This appeal is directed against order-in-original no. dated PUN- EXCUS-004-COM-23-24/16-17 dated 19.12.2016 as the impugned order the decision held as follows: In the Show Cause Notice F.No. V (84 85)15-69/Adj/Commr/16-17 dated 28.04.2016: (i) Cenvat credit of Rs. 5,98,09,007/- (Rs Five Crore Ninety Eight Lakh Nine Thousand Seven only short reversed by LG Electronics India Pvt. Ltd, un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad with Section 11 AC of the Central Excise Act, 1944. Accordingly. I impose penalty of Rs 5,98,09,007/- (Rs Five Crore Ninety Eight Lakh Nine Thousand Seven only) on LG Electronics India Pvt. Ltd under the said provisions for SCN F.No. V (84 85)15-69/Adj/Commr/16- 17 dated 28.04.2016. I also impose penalty of Rs 28,63,794/- (Rs Twenty Eight Lakh Sixty Three Thousand Seven Hundred Ninety Four only) on LG Electronics India Pvt. Ltd under the said provisions for SOD F.No. V (84 85)15- 72/Adj/ADC/16-17 dated 06.05.2016. As regards the individual culpability of company officials against the roles played by them in the case. and as discussed in the Findings (Para 19) above, I hold that penalty is liable to be imposed on Shri Rajhkumar Jain, GM-F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aged in the manufacture of electronic goods The present issue relates to the Appellants having a factory located at Pune. The Appellant's Noida unit is registered as Input Service Distributor. 2.2 The Appellant is also engaged in selling of goods manufactured by various electronic manufacturing service providers who manufacture goods specifically for each unit of L.G. India. Thus, the appellant is also engaged in the activity of trading of goods manufactured by the EMS. 2.3 The Appellant as well as EMS clear such manufactured goods from their respective location after payment of excise duty determined under section 4A of the Act. From the factory location, both dutiable and exempted goods, are transferred to the Central depot and stored ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reversal in terms of Rule 6(3A) of CENVAT Credit Rules, 2004 is correct. Hence, there is no short reversal by the Appellant based on the decisions as follows: o M/s Mercedes Benz India Pvt Ltd. [2015 (40) S.T.R. 381 (Tri.- Mumbai)]. o Reliance Industries Limited 2019 (3) TMI 784-CESTAT Ahmedabad. ⮚ The amendment made by the Notification No. 13/2016-C.E (N.T), dated 1.3.2016 has further clarified and ratified the stand adopted by the Appellant. These amendments have been held to be retrospective as per the following decisions o Aavantika Gas Ltd. [2023 (1) TMI 5050-CESTAT New Delhi]. o JWC Logistics Park Pvt. Ltd. [2022 (5) TMI 430-CESTAT Mumbai]. o National Steel Agro Industries Limited [2021 (6) TMI 60- CESTAT New Delhi]. o E-Conne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egra and has been decided by this Tribunal and various High courts as referred to by the learned counsel. 4.4 On the second issue we find that during the period under dispute Rule 7 of Cenvat credit rules read as follows: Rule-7 Manner of distribution of credit by input services distributor:- (a) ., (b) . (c) . (d) . (e) . (f) . (g) provision of Rule 6 shall apply to the units manufacturing goods or provider of output service and shall not apply to the input service distributor. 4.5 The contention of the department that in terms of the Rule 7 (g) the reversal as per Rule 6 is to be made by the units manufacturing goods or provider of output service is academic in nature in cases where the reversal has been made by the ISD, and there is no r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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