Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (11) TMI 1422 - AT - Central ExciseApplicability of Rule 6(2) and 6(3) - Separate accounts not maintained – Services used for services used in manufacturing and trading activity – Held that:- The goods which the appellant had traded are imported goods - As per the definition of exempted goods which are exempt from the whole of the duty of excise leviable, and includes goods which are chargeable to ‘Nil' rate of duty and goods in respect of which the benefit of an exemption under Notification No. 1/2011-CE dated 01/03/2011 is availed - exempted goods have to be excisable goods - By no stretch of imagination imported goods which are traded can be considered as exempted goods - the question of invoking the provisions of Rule 6(2) and 6(3) for payment of a sum @10%/5% on the value of the exempted goods would not arise at all. The appellant has not availed any CENVAT credit at all in respect of input service relating to the traded goods - question of maintenance of separate accounts does not arise at all - Consequently provision of sub-rule (3) of the said Rule 6 mandating payment of an amount equal to 10%/5% of the value of the exempted goods and exempted service would also not apply - the appellant has availed input service credit on both dutiable/exempted goods and taxable/exempted service, Rule 3A which came into force w.e.f. 01/04/2008 provides for reversal of credit on the input service attributable to exempted goods/services on a proportionate basis based on the turn over. The appellant has precisely done that ab initio and has not taken any credit in respect of input services attributable to the traded goods - in the absence of any evidence led by Revenue proving that the appellant has taken ineligible credit, the question of appellant violating the provisions of Rule 6 of the CCR, 2004 would not arise – Following M/s. Orion Appliances Ltd. Versus CST Ahmedabad [2010 (5) TMI 85 - CESTAT, AHMEDABAD] - if the assessee reversed input service tax credit attributable to trading activities according to standard accounting principles – Decided in favour of Assessee.
|