TMI Blog2012 (12) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... n common input services is not taken, appellant is required to maintain separate accounts – Assessee argued that once a service tax paid on input services has not been taken at all, the provisions of Rule 6(3)(c) of CCR would not be applicable – Issue remand back to revenue and waive the requirement of pre-deposit of service tax demanded by Commissioner. Held that:- As the assessee did not fulfill their obligation which has resulted in impugned order. Therefore an amount of pre-deposit required to be deposit by assessee. And also submit copies of the relevant documents with a worksheet showing the details of documents on the basis of which credit is taken and the details of credit utilized. Appeal remand back to AO - ST/461 of 2012, ST/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availed cenvat credit on the entire input services received by them. Thus as per condition of Clause (c) of Rule 6(3) of Cenvat Credit Rules, 2004 with effect from 10.9.2004 appellant was required to utilise credit only to the extent of an amount not exceeding 20% of the amount of service tax payable on taxable output services. Prior to this date, the service provider were entitled to the extent of 35% of the service tax payable on taxable output service as per sub-Rule (5) of Rule 3 of the erstwhile Service Tax Credit Rules, 2002. However, on detail verification of ST-3 returns filed by appellant, it was noticed that they had utilised cenvat credit of more than the admissible amount i.e. 20% / 35% of the amount of service tax payable on ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Commissioner s view that even if cenvat credit on common input services is not taken, appellant is required to maintain separate accounts. For ready reference we re-produce Rule 6(2) of Cenvat Credit Rules, 2004. (2) Where a manufacturer or provider of output service avails of CENVAT credit in respect of any inputs or input services except inputs intended to be used as fuel, and manufactures such final products or provides such output services, then, the manufacturer or provider of output service shall maintain separate accounts for receipt, consumption and inventory of input and input service meant for use in the manufacture of dutiable final products or in providing output service and the quantity of input meant for use in the manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that he can get this verified properly and thereafter consider the matter afresh. We would not like to go into all other issues at this stage since we have concluded that on this ground alone the matter is required to be sent back for verification of actual position as per the records. Therefore, we prefer to leave all other issues open during the fresh adjudication by the Commissioner. In view of the above discussion, we waive the requirement of pre-deposit of service tax demanded, interest thereon, penalties etc. allow the stay petition and remand the matter back to the Commissioner for fresh adjudication in terms of the discussion above. Needless to say, appellants shall be given an opportunity to present their case before a final decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing both the sides, the observations regarding the verification of documents by the Commissioner, we find that appellants have contributed substantially to the impugned order being passed against them. 5. While making submissions on behalf of the Revenue, learned A.R. submitted that for some time, he was the Jt. Commissioner incharge and he stated that Vice President of the Company had met him and almost 90% of the verification was over and he had told the Vice President officers of the Company may meet the Assistant Commissioner and finalise the issue with regard to balance 10%. The submissions made by the learned A.R. and the observations of the learned Commissioner discussed in Para 3 above would clearly show that appellants hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , even though in the normal course, at the stay stage when the matters are remanded, pre-deposit is not insisted upon. In this case, it has become necessary to ensure that appellant cooperates with the department. Having regard to the facts and circumstances of the case and the submissions made before us, we consider it appropriate that appellant be required to deposit an amount of Rs. 50,00.000/- (Rupees fifty lakhs only) within eight weeks from today and report compliance before the Commissioner. We also direct that appellant while submitting compliance also submit copies of the relevant documents with a worksheet showing the details of documents on the basis of which credit is taken and the details of credit utilised and also show on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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