TMI Blog2009 (7) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 1-7-2009 - Shri P.K. Das, Member (J) Shri Vikrant Kakaria, Advocate, for the Appellant. Shri S. Gautarn, DR, for the Respondent. [Order]. - Relevant facts of the case, in brief, are that the appellants are engaged in the manufacture of iron and steel ingots falling under Chapter 72 of the Schedule to the Central Excise Tariff Act, 1985. They are also registered with the Central Excise authorities for payment of service tax on transportation of goods by road. The appellants availed Cenvat credit on inputs, capital goods and input services. During the period 1-3-2005 to 31-12-2005 they cleared the inputs as such and reversed the credit in terms of Rule 3(5) of Cenvat Credit Rules, 2004. A show cause notice dated 15- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es which includes credit on input and input service. He further submits that by reading Rule 3(5) of Rules the reversal of credit would include both the components, namely input and input service. So demand of service tax credit and imposition of penalty are justified. 4. Relevant portion of various provisions of Cenvat Credit Rules, 2004 are reproduced below: "RULE 3. CENVAT credit. - (1) A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit (hereinafter referred to as the Cenvat credit) of- (i) the duty of excise specified in the First Schedule to the Excise Tariff Act, leviable under the Excise Act; xxx xxx xxx xxx xxx xxx xxx (ix) the service tax leviable wider Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... context Rule 3(5) directs for manufacturer while removing input or capital goods to pay an amount equal to the credit availed in respect of such input or capital goods. There is no indication for payment of credit in respect of input service. In my view, as there is no provision for payment of credit availed in respect of input service credit by removing the input as such, there is no scope to demand the input service credit. I also noticed that Rule 3(1) of the Rules is only for taking of the credit. The contention of the learned D.R. has no force. 6. The Tribunal in the case of Chitrakoot Steel Power Pvt. Ltd. (supra) held that there is no such provision of reversal of credit of service tax availed in relation to input or capital g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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