TMI Blog2016 (11) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... envat Credit Rules, 2002 - From the proviso of above Rule, it can be seen that the service tax liability of a particular month if to be discharged from Cenvat account it can be paid only Cenvat credit availed and lying in balance on the last day of the month for which the service tax is due. In the present case the service tax of ₹ 12,57,365/- is due for the month of November 2008 whereas the same was paid from the Cenvat Credit earned from 30.11.2008 to 31.1.2009, which is not permitted as per the clear language of the proviso to Rule 3(4) of the Cenvat Credit Rules,2004 - the appellant was required to pay the dues of ₹ 12,57,365/- from cash and not from Cenvat account, however, since the appellant have discharged the service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal disposed off - decided partly in favor of appellant. - ST/86799/2015 - A/86093/16/SMB - Dated:- 29-2-2016 - Shri Ramesh Nair, Member (Judicial) Shri Ms. Puloma Dalal, C.A. for Appellant Shri S.L. Karoliya, Assistant Commissioner (A.R) for respondent ORDER The appeal is directed against the Order-in-Appeal No. SR/29/ST-I/2015 dated 25/05/2015 passed by the Commissioner of Service Tax (Appeals)-I Mumbai Zone, wherein the appeal of the appellant was rejected by upholding the Order-in-Original No. 12/STC-I/RK/10-11 dated 24.12.2010. 2. The fact of the case is that the adjudicating authority confirmed the demand of ₹ 12,57,365/-, interest under Section 75 and imposed penalty under Section 76 and Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r (A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He further submits that Rule 3(4) of Cenvat Credit Rules, 2004 and proviso thereof is very clear, according to which the Cenvat Credit of a particular month can be utilized only for the service tax due for the respective month and the service tax for that month cannot be paid from the Cenvat credit earned in the subsequent months. The judgments cited by the Ld. Chartered Accountant are not applicable in the present case for the reason that those judgments are on the issue that during the default period whether the payment of duty/service tax can be discharged from the Cenvat Credit 5. I have carefully considered of the submissions made by both t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned from 30.11.2008 to 31.1.2009, which is not permitted as per the clear language of the proviso to Rule 3(4) of the Cenvat Credit Rules,2004. As regard, the judgments relied upon by the Ld. Chartered Accountant, I find that all these judgments are on the issue of Rule 8(3A) of Central Excise Rules, 2002 and on the issue that whether the Cenvat Credit during the default period can be utilized for payment of duty on the current clearances. In the present case, the issue is not related to the current liability but it is related to the dues of the previous period and as per Rule 3(4) of Cenvat Credit Rules, 2004, the service tax of the previous period of November 2008 can be paid from the Cenvat credit balance available as of 30.11.2008 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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