9911796707
TMI Blog2025 (4) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... pted service. 2. The brief facts are M/s. Wipro Industries Ltd., the Appellant is engaged in manufacture of 'Soap and Soap Noodles' falling under Chapter sub-heading 3401 1190 and 3401 1919 of the first schedule of Central Excise Tariff Act, 1985. The appellant was also availing Cenvat credit on inputs, capital goods, input services under the provisions of Rule 3 of Cenvat Credit Rules, 2004. During Audit, it is observed that appellant is manufacturing excisable goods and also carrying out trading activity, which is an exempted service. On scrutiny, Audit observed that in addition to the manufacture and clearance of 'Soap and Soap Noodles', appellant had imported 'baby diapers' in bulk and cleared the same to their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty. Aggrieved by impugned order, present appeal is filed before the Tribunal. 3. When the appeal came up for hearing, the learned counsel for the appellant submits that demand for the period from March 2010 to January 2014 is barred by limitation, since the demand is confirmed by invoking the extended period of limitation. Learned counsel for the appellant further submits that for the period prior to April 2011, appellant is not required to reverse credit relating to common 'security services' in view of Rule 6(5) of Cenvat Credit Rules, 2004. The said Rule was applicable till 01.04.2011 and common credit can be availed without any reversal thereof in relation to services mentioned therein. Since security services were specificall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... products for the period May 2013 to September 2013, letter dated 04.02.2015 where the appellant had provided the method of calculating the proportionate Cenvat credit for the exempted service, formula adopted by the appellant, letter dated 06.02.2015, 13.02.2015, etc. Thus, in spite of giving the entire details required for calculating the method adopted by the appellant while reversing the proportionate Cenvat credit on exempted goods, show-cause notice came to be issued on 18.03.2015 demanding duty for the period from March 2010 to December 2014. 4. The learned counsel further submits that for the subsequent period from December 2014 to December 2017, the appellant had adopted the very same method of reversing cenvat credit availed on c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nput services used in or in relation to the manufacture of exempted goods or provision of exempted services, would be equal to (M/N) multiplied by "P" where "M" denotes the total value of exempted services provided plus the total value of dutiable and exempted goods manufactured and removed during the financial year. "N" denotes the total value of taxable and exempted services provided and total value of dutiable and exempted goods manufactured and removed and "P" denotes the "total cenvat credit taken on input services during the financial year." I have seen the statement of reversal furnished by the assessee vide their letter dated 28.08.2015. I find that the credit reversed by the assessee does not subscribe to the method prescribed abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so get service invoice based on cost centre except for security service. We are using the following method as given in Rule 6 of Cenvat Credit Rules, 2004 for reversing the service tax credit in respect of exempted clearance. A- Clearance value of Dutiable Clearance B- Clearance value of Exempted Clearance C- Service tax credit on common input service Formula; Service tax credit on exempted value=(B)/Sum of Total clearance (A+B) will give % of Exempted clearance value: This % will be multiplied with service tax credit available on common input service and the resulted amount will be reversed." 8. However as per the impugned order, adjudication authority rejected the same in a casual manner by quoting that; "however in the absence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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