TMI Blog2009 (6) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... versed only the Cenvat credit of the Excise Duty. The Department pointed out that they should have also reversed the credit of service tax on GTA service used for transportation of those inputs whom Cenvat credit had also been taken. – Held that - there is no provision to reverse the credit of service tax availed in respect of such goods or capital goods – demand on account of non reversal of Cenv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dance with the provisions of Rule 3 (5) of Cenvat Credit Rules, 2004, reversed only the Cenvat credit of the Excise Duty. The Department pointed out that they should have also reversed the credit of service tax on GTA service used for transportation of those inputs whom Cenvat credit had also been taken. It is on this ground that Cenvat credit amounting to Rs. 2,75,684/- was demanded from the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat from provision of Rule 3 (5) it is clear that the only the reversal of Cenvat credit availed in respect of inputs or capital goods is required, and not of the input services. The appellant relied upon the judgment of the Tribunal in the case of Chitrakoot Steel Power Pvt. Ltd. vs. CCE, Chennai reported in 2008 (10) S.T.R. 118 (Tri. - Chennai) wherein the Tribunal has taken the same view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Credit Rules, the scope of the terms Cenvat credit covers not only the credit duty on inputs or capital goods but also the credit of service tax in respect of input services and that in view of this, the service tax credit has been rightly demanded from the appellant and its demand has been rightly confirmed. 3. I have carefully considered the submissions from both the sides and perused the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the assessee as such, sub-rule 3 (5) provides for recovery of the amount of the Cenvat credit availed in respect of such inputs or capital goods and there is no provision to reverse the credit of service tax availed in respect of such goods or capital goods. Following the judgment of the Tribunal, I hold that the impugned order is not sustainable. The same is set aside. The appeal is allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
