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2018 (7) TMI 1054 - AT - Central ExciseCENVAT Credit - duty paying documents - Debit Notes - Rule 9 of Cenvat Credit Rules, 2004 - Held that:- The Debit Note contains all the details as required for availment of credit. Further, the copies of Debit Notes have also been placed on record and in the Debit Notes the assessee has mentioned the Invoice No. by which the goods were originally sent by the appellant relates to and therefore it can easily be ascertained that the goods received by the assessee is the same as was originally sent - further, the original authority as well as Commissioner (Appeals) who has upheld the Order-in-Original has traveled beyond the SCN inasmuch as there was no allegation in the SCN that the goods are not returned back to the factory. The only allegation in the show-cause notice is that Debit Note is not a valid document as per Rule 9 of CCR - credit cannot be denied on this count. CENVAT Credit - common input services used in the factory and dealership unit without maintaining separate records - Rule 6(3) of CCR - Held that:- Tribunal in the case of HCL Infosystem Ltd. [2014 (7) TMI 76 - CESTAT NEW DELHI] has held that trading was an exempted service even prior to 01.04.2011 and therefore by following the ratio of the decision, the CENVAT credit availed on common input services relating to trading activity is required to be reversed by the appellant proportionately and therefore this issue is decided against the assessee - credit not allowed - also it is held that the demand is not barred by limitation. CENVAT Credit - sales rejects under Rules 16 - goods returned from EOU - it was alleged that appellant did not repair or return the goods and stored them as scrap - Held that:- Since the goods are lying with the appellant and as and when the appellant would clear those goods then he will pay the requisite Excise duty - demand at this stage not sustainable - further, it is a settled position that the charging of duty by supplier cannot be questioned at the recipient end - demand set aside. Appeal allowed in part.
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