TMI Blog2022 (10) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... ) or Rule 6(2) or Rule 6(3) of the CCR - Rule 6(3) states that if Rule 6(1) or 6(2) are not fulfilled then an amount of 5% / 6% of the value of the exempted services shall be paid. These options are available to the assessee and it is open to the assessee to chose any of the options. It is not open to the Revenue to chose one of the options and force it upon the assessee. If the obligation is not fulfilled under any of the options, the irregularly availed Cenvat credit can be recovered under Rule 14 of CCR. In this case, the appellant availed Cenvat credit and on being pointed out by the audit, reversed the entire amount of Cenvat credit so availed along with interest. The appellant could have availed Cenvat credit proportionately to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Alwar whereby he confirmed demand of Rs. 5,34,29,176/ under Rule 14 of Cenvat Credit Rules, 2004 [CCR] read with Section 73(2) of the Finance Act, 1994 along with interest under Rule 14 of CCR read with Section 75 of the Finance Act, 1994. He further imposed an equal amount as penalty under Rule 15(3) of CCR, read with Section 78 of the Finance Act, 1994. 2. We have heard learned Chartered Accountant for the appellant and learned authorized representative for the Revenue. 3. The undisputed facts of the case are that the appellant was providing forward contract services taxable under Section 65(45a) of the Finance Act 1994 and was paying service tax as applicable and was also availing the benefit of Cenvat credit on the input serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n input services. The appellant had reversed the same during audit itself along with interest and there was no case for Revenue to have issued a show cause notice at all. He further submits that if Cenvat credit has been availed and has then been reversed, it is as good as not availing the Cenvat credit at all as has been held by the Supreme Court in Chandrapur Magnet Wires (P) Ltd. Vs. Collector of Central Excise, Nagpur [1996 (81) ETL 3 (SC)]. He also placed reliance on several other case laws in which the same view was taken. 6. Learned authorized representative for the Revenue supports the impugned order. 7. We find that Rule 6 of CCR places several obligations upon the assessee to avail Cenvat credit. If these obligations are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Therefore, no Cenvat credit on common input services remains availed by the appellant and its Therefore, the obligation under Rule 6(1) has been fully met. Further, Rule 6(2) requires separate accounts to be maintained but it does not specify in what form the accounts have to be maintained. If the credit is taken and thereafter reversed it is also a way of maintaining accounts and we do not find any restriction in the CCR against maintaining the accounts in this manner. Therefore, the appellant is fully compliant in terms of Rule 6(2) as well. As the appellant has fulfilled its obligation in terms of Rule 6(1) and also in terms of Rule 6(2), no case existed at all for issuance of the show cause notice in the first place nor it being conf ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
