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2018 (11) TMI 1148 - AT - Service TaxCENVAT credit - common input services used to render taxable as well as exempted services - Rule 6(3) (c) of the Cenvat Credit Rules, 2004 - invocation of extended period. Extended period of limitation - contention of petitioner is that SCN dated 06.01.2011 will become time barred for the period prior to 2009, since an earlier show cause notice dated 12.10.2006 had already been issued to SFL on identical issue - Held that:- Since SCL and SFL remained as separate entities prior to their merger, we are of the view that invoking the extended period of limitation in the second show cause notice dated 06.01.2011 will not be against the order of the Supreme Court in the Nizam Sugar case. [2006 (4) TMI 127 - SUPREME COURT OF INDIA], where it was held that extended period cannot be invoked in a second show cause notice if, for identical facts for an earlier period, a show cause notice has already been issued. The appellant will not be entitled to credit on common input services. Turning to the period post 01.04.2008, it is noted that Rule 6(3) has been amended from this date and Rule 6 (3A) has been inserted in place of the erstwhile Rule 6(3) (c) which had prescribed a limit of 20% on the common input services credit. Rule 6(3A) has prescribed the procedure for proportionate reversal of credit availed on common input services - The Tribunal in the case of M/S. SIFY TECHNOLOGIES LTD. VERSUS COMMISSIONER OF SERVICE TAX, LTU, CHENNAI [2018 (9) TMI 317 - CESTAT CHENNAI] has upheld that in respect of common input services, an assessee will need to follow either sub rule 2 or Sub Rule 3 of Rule 6. By maintaining separate accounts and availing cenvat credit only in respect of the exclusively taxable services in full, the appellant has subscribed to sub rule 2 - even for the period post 01.04.2008, despite the amendment carried out in Rule 6(3) and insertion of sub Rule 3A the decision of Tribunal is followed. Another case of appellant is that the appellant is entitled to the full cenvat credit in respect of input services specified in Rule 6(5) of the Cenvat Credit Rules - Held that:- This sub rule permits full credit of 17 services specified therein - there is no reason for denying the above credit. It is also relevant to record that in the earlier proceeding culminating in the Order In Original dated 30.09.2009, the full credit of services under Rule 6(5) was in fact allowed by the adjudicating authority. Appeal allowed in part.
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