TMI Blog2009 (7) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... koot Steel & Power (P.) Ltd. v. CCE 2008 -TMI - 3795 - CESTAT, CHENNAI, where as held that- the credit availed inputs or capital goods are removed from the factory of the assessee, sub-rule (5) of rule 3 of the Cenvat Credit Rules, 2004 provides for recovery of equal amount of credit. There is no such provision to reverse credit of service tax availed in relation to such inputs or capital goods when removed from the factory. Moreover, rule 14 of the Cenvat Credit Rules, 2004 provides for recovery of Cenvat credit availed or utilised wrongly. In the instant case, the appellants had taken the credit correctly in terms of the statutory provisions, held that- there is no reason to interfere the order of the Commissioner (Appeals). Accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in rule 9". The contention of the ld. DR is that the respondents are required to reverse credit of service tax on GTA on removal of inputs as such. 3. Ld. Counsel on behalf of the respondents reiterates the findings of the Commissioner (Appeals). He submits that the credit on input-services were used both on dutiable and exempted products. He submits that rule 6(5) of the Rules provides that, "no service tax paid on taxable services shall be allowed on such services used exclusively in or in relation to the manufacture of exempted goods or provided exempted service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the appellants, is whether or not Cenvat credit on the services of GTA is admissible on transportation of raw materials which are subsequently removed as such. In this context, I observe that there is no requirement under the Cenvat Credit Rules, 2004 (in the manner as is specifically provided for reversal of credit in case of removal of inputs as such) for reversing the credit availed on input services even if the inputs are removed as such subsequently. Therefore, credit availed of service tax cannot be denied. Thus for this reason, the credit availed of Rs. 1,563 and Rs. 19,643 (service tax) and Rs. 31 and Rs. 392 (education cess) cannot be denied." There is no allegation that the input-services were used exclusively in or in r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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