TMI Blog2024 (1) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... having been retracted. It is seen that reliance had been placed on the statement of Shri Anand Dhokia and which, by its contents, was held as having absorbed the statement of Sachin Madan with it. With the former having been made a noticee and response thereto being denial of the charges, that could well be deemed to be retraction that neutralizes the presumption that the adjudicating authority relied upon for conclusion as facts. Disallowance of credit cannot rest upon statements but must stand the test of definition of input service in rule 2(l) of CENVAT Credit Rules, 2004 on facts which is sorely lacking in the impugned order. The observation of the adjudicating authority that it is upto the assessee to establish eligibility is, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... security charges, share transfer agent, stock broking, courier, insurance, maintenance, payroll, placement, customs house agent, freight, commission, other commission and brokerage which bore no relationship to the manufacture of goods at Patalganga was not in conformity with the definition of input services in section 2(l) of CENVAT Credit Rules, 2004. The adjudicating authority relied upon the exposition by Central Board of Excise Customs (CBEC) in circular no.943/04/2011-Cx dated 29th April 2011 and statement of the appellant-individual endorsing the concurrence of Mr Sachin Madan who had affirmed ineligible availment as alleged by the investigating unit. 2. The impugned proceedings commenced with audit pointing out ineligibility ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces had been procured towards eligible manufacture or rendering of service as held by the Tribunal in Commissioner of Central Excise, Vapi v. Samita Conductors Ltd [2012 (278) ELT 492 (Tri-Ahmd)], in Doshion Ltd v. Commissioner of Central Excise, Ahmedabad [2013 (288) ELT 291 (Tri-Ahmd)], which was affirmed by the Hon ble High Court of Gujarat in Commissioner of Central Excise v. Doshion Ltd [2016 (2) TMI 183 GUJARAT HIGH COURT], and in Oil Natural Gas Corporation Ltd v. Commissioner of Central Excise, Customs and Service Tax, Raigad [2015-TIOL-1571-CESTAT-MUM]. 4. Learned Counsel claimed that assigning of credit was singularly an internal arrangement constrained only by rule 7 of CENVAT Credit Rules, 2004 as upheld in decisions of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of each of the services. We are unsure if the same had been preferred before the original authority even as are not certain if the entirety of submissions found its way into that proceeding but was not recorded. Disallowance of credit cannot rest upon statements but must stand the test of definition of input service in rule 2(l) of CENVAT Credit Rules, 2004 on facts which is sorely lacking in the impugned order. The observation of the adjudicating authority that it is upto the assessee to establish eligibility is, in our view, not a correct appreciation of CENVAT Credit Rules, 2004 inasmuch as recovery, initiated under rule 14 of CENVAT Credit Rules, 2004, must engage the assessee with evidence to justify such recovery which is only th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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