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2019 (2) TMI 1229 - AT - Central ExciseCENVAT Credit - common input services used in the manufacture of excisable goods as well as for trading activity - non-maintenance of separate records - demand of 5%/ 6% of the value of exempted i.e. trading activities - Rule 6(3)(ii) of Cenvat Credit Rules - Held that:- The appellant before issuance of show cause notice, reversed the Cenvat credit of ₹ 87,682/-, the proportionate credit as per the statement was ₹ 1,82,426/-, however, as there was dispute on the quantification, after passing the adjudication order the appellant have reversed an additional amount of ₹ 4,55,232/-. Thus, a total amount of ₹ 5,42,914/- was reversed, which was the total credit availed on the common input service. Once proportionate credit is reversed along with interest if any arise due to delay, reversal of the demand under Rule 6(3)(ii) cannot be made - In the present case, though it appears that appellant have reversed the credit however, no evidence was produced regarding payment of interest. Since a part reversal was made after passing the order by original adjudicating authority, the correctness of the reversal was not verified by the Adjudicating Authority. The Adjudicating Authority is directed to reconsider the whole issue particularly, if it is found that the appellant have paid the Cenvat credit of attributed to common input services used in the trading activity and interest on such credit, then the demand would not sustain - appeal allowed by way of remand.
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