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2018 (6) TMI 1143 - AT - Central ExciseCENVAT credit - Banking and other Financial Services - Reverse Charge Mechanism - Revenue was of the view that the appellant was required to reverse 50% of the cenvat credit on input and input service taken, on monthly basis as stipulated under Rule 6(3B) of the Cenvat Credit Rules, 2004 - Held that:- It is evident that company, which accepts deposits from public for the purpose of lending or investment, will be considered as banking company - In view of the Explanation to Section 5(c) of the Banking Regulation Act, 1949, the appellant will not fall within the category of ‘Banking Company’ since they are primarily engaged in the manufacture of iron steel items. Also, Since the appellant’s principal business is not receiving deposits and lending money in any manner, it cannot be said that they fall within the category of NBFC. The provisions of Rule 6(3B) will be applicable only to a banking company and financial institution including a non banking financial company. Since the appellant does not fall within any of the categories, the provisions of Rule 6(3B) will not be applicable to the appellant. Appeal allowed - decided in favor of appellant.
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