TMI Blog2019 (8) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... l issue has held that CENVAT credit cannot be denied with regard to Service Tax paid on the invoice issued to the head office rather than the factory which has actually utilized the services so long as the input services are received and utilized by the appellant, this at best can only be termed as procedural violation which is not fatal to the right of the appellant - Thus, CENVAT credit cannot be denied on the ground that the invoices issued in the name of the head office. CENVAT credit - denial on account of nexus of raw material with finished goods - HELD THAT:- The credit has been availed on the material used for cladding of equipment/pipes which fall under the category of repair and maintenance of manufacturing equipment and is int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffice and jointing sheets, aluminium sheets, SS plates and HDPE traptent which are not eligible items as per CENVAT Credit Rules. Therefore, a SCN dated 20.06.2017 was issued demanding CENVAT credit of ₹ 6,43,298/- for the period from 1st March, 2015 to 31st March, 2017 along with interest and imposition of penalty under Section 11A of Central Excise Act, 1944. After following the due process the original authority vide Order-in-Original dated 24.01.2018 confirmed the demand of CENVAT credit of ₹ 6,43,298/- along with interest and imposed equal penalty under Section 78 of the Act. Aggrieved by the said order, the appellant filed appeal before the Commissioner (Appeals) who rejected the same. 3. Heard both the part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that they are not eligible. He further submitted that the appellants have availed CENVAT credit on asbestos fiber jointing sheets/aluminium sheets/SS plates and the said sheets are used for the purpose of cladding of the steam pipes/boller valves for the purpose of avoiding steams loss. Further, the Commissioner has rejected the CENVAT credit on the ground that the appellants have not produced any evidence on record to show the actual usage and to counter this argument Learned Counsel submitted that in the Order-in-Original, the original authority has admitted the usage of the said items for the purpose of repair and maintenance but denied on the ground that the repair and maintenance was done when the process of manufacture of goods was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2016 (41) STR 553 4.4. He further submitted that when the credit is not utilized from the date of its availment till the date of reversal, no interest is payable or for this submission, he relied upon the following: Rule 14 of the CENVAT Credit Rules, 2004 effective from 01.04.2012 Vilax Industrial Fabrics Vs CCE 2016 (8) TMI 752 (affirmed by Hon ble Karnataka High Court as reported in 2018 (7) TMI 1369 Vishwaraj Sugars Ltd. Vs CCE 2019 92) TMI 1556 Ashok Iron Works Ltd. Vs CCE 2019 (2) TMI 666 5. On the other hand, learned AR defended the impugned order. 6. After considering the submissions of both the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... repair and maintenance of manufacturing equipment and is integrally connected with the manufacturing process and therefore, in view of the case laws relied upon by the appellant cited supra, CENVAT credit on the impugned items are eligible. As far as CENVAT credit on remaining items are concerned, the appellant did not contest that in the present appeal but he has confined his CENVAT credit only for an amount of ₹ 4,15,642/- and ₹ 1,15,259/- and with regard to the other credit, he has already reversed and he had also proved on record that he has not utilized the same but he has only availed and therefore he is not liable to pay the interest and the penalty. 7. In view of my discussion above, I am of the considere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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