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2018 (2) TMI 129 - AT - Central ExciseCENVAT crediit - whether can cenvat credit of service tax paid on the services in relation to issue and receipts of Foreign Currency Convertible Bond (FCCB) in Singapore, a place outside India, be used for paying central excise duty on the goods manufactured in India? - whether the entire cenvat credit taken can be used even when no separate account has been maintained in respect of receipt and consumption of common input service used in the manufacture of dutiable final product or in providing output taxable services and such input services are also used for manufacture of exempted final products or for providing exempted services? Held that: - The Rule 6(5) of the Cenvat Credit Rules, 2004 covers the input services of banking and other financial services and specifically allows the credit of input services, even if they are partly used for the provision of taxable activities. The respondent has filed the breakup of their turnover during the relevant financial year which has been quoted hereinabove. From the perusal of the turnover, it is evident that the major part of the turnover is with respect to manufacture and clearance of dutiable packaged software which is almost 50% of the total turnover. Thereafter the balance turnover is with respect to exempted goods customised software and for services - the respondent has utilised the cenvat credit taken in their business activities in India and a major part of it is with regard to manufacture and clearance of dutiable output/services. Respondent-assessee is entitled to consequential benefit - appeal dismissed - decided against Revenue.
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