9911796707
TMI Blog2025 (2) TMI 555X X X X Extracts X X X X X X X X Extracts X X X X ..... ver felt that the proper procedure had not been followed and demanded the amount payable in terms of Rule 6(3)(i) of Cenvat Credit Rules, 2004. The whole issue is procedural in nature and while the appellant was required to follow the prescribed procedure, no act of deliberate deception with the design of securing an unfair advantage has been made out. This being so and considering that demand is disproportionately higher than the advantage if any gained by the appellant and which has subsequently been reversed along with interest, the ends of justice would be met by confirming the credit reversed along with interest already paid and the dispute brought to a close. No purpose would be served in pursuing this low tax amount now that the Fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness Support Service. Department alleges that the appellants are entitled to take credit in respect of only two services namely security agency service and management, maintenance or repair services. However, the other services which were used for manufacture of both dutiable and exempted goods were not intimated to the department and the appellants have not discharged the corresponding value of exempted goods during the period in dispute. Hence Show Cause Notice dated 15.3.2012 was issued to the appellant proposing to recover an amount of Rs.54,08,898/- payable for the clearances of exempted goods made during the period April 2008 to March 2008 along with interest and penalty. After due process, the Ld. Adjudicating Authority confirmed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant had already elected to operate under this rule for the purposes of CENVAT credit Rules. Once the appellant has elected to operate under this Rule, it is submitted it is equally applicable to both input and input services. He therefore submitted that the appellant had exercised this option in writing and hence is entitled to reverse the credit relating to input services too proportionately in terms of the formula enshrined in Rule 3(a). This being the case the reversal of input credit relatable to services already made by the appellant is in order and the hence demand does not survive. He stated that Revenue has failed to note the ratio laid down by the Apex Court in the case of Commissioner of C. Ex. Mumbai-I Vs. Bombay Dyeing & Mf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vat Credit Rules, 2004. 5. We find that the whole issue is procedural in nature and while the appellant was required to follow the prescribed procedure, no act of deliberate deception with the design of securing an unfair advantage has been made out. This being so and considering that demand is disproportionately higher than the advantage if any gained by the appellant and which has subsequently been reversed along with interest, the ends of justice would be met by confirming the credit reversed along with interest already paid and the dispute brought to a close. No purpose would be served in pursuing this low tax amount now that the Finance Act 1994, itself has been repealed. As stated by the Hon'ble Supreme Court in Sugandhi Vs P. Rajkum ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
