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2019 (8) TMI 1253 - CESTAT ALLAHABADCENVAT credit - common input services used in trading of goods as well as for dutiable goods - Rule 6(3) of the Cenvat Credit Rules, 2004 - Adjudicating Authority, however observed that though the head office has reversed the credit availed by them on common input services but the same was legally required to be reversed at the time of transfer of the credit to the noticee’s factory. HELD THAT:- The Adjudicating Authority is not disputing the fact of reversal of Cenvat credit availed on common input services by the head office. He is also not doubting the correctness of the said reversal. The said reversal has been made by the head office alongwith payment of interest of ₹ 6,98,314/- lakhs. The effect of said reversal is as if no credit was availed by the appellant in respect of the common services which were utilized for trading of the goods - In such a scenario, further demand of a particular percentage of the value of the traded goods in terms of Rule 6(3) is neither in accordance with the provisions of Cenvat Credit Rules nor with the settled principle of law. It stands held by various decisions of the judicial and quasi-judicial authorities that in case of reversal of proportionate credit attributable to the exempted goods/services, further demand in terms of Rule 6(3) is unsustainable. Appeal allowed - decided in favor of appellant.
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