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2019 (5) TMI 512 - AT - Service TaxCENVAT Credit - duty paying invoices - credit taken on 'Advance Transfer Debit' (ATD) issued by Central procuring offices - HELD THAT:- This issue is squarely covered in favour of the appellant, by the precedent order of this Tribunal in the case of BHARAT SANCHAR NIGAM LTD. ERODE VERSUS COMMISSIONER OF CENTRAL EXCISE, SALEM [2013 (12) TMI 742 - CESTAT CHENNAI] where it was held that considering the commercial practice which was necessary for efficient procuring the equipment in question, this procedural lapse cannot be considered as a reason to deny Cenvat credit involved - credit allowed. Utilization of Cenvat credit - utilisation of excess of 20% of input tax - HELD THAT:- The issue is no more res integra and the same is covered in favour of the appellant - assessee by precedent ruling of this Tribunal in IDEA CELLULAR LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, ROHTAK [2009 (2) TMI 91 - CESTAT NEW DELHI] wherein the issue was whether the common input services used for providing taxable and exempted output services to be restricted to 20% of exempted services. It was further held that the restriction under Rule 6(3)(c) is not applicable to capital goods credit - also as per CBEC Circular dated 1st October, 2007 the only restriction with respect to Cenvat credit on capital goods was that if the capital goods used exclusively for manufacture or rendering a non taxable services - credit allowed. Short payment of service tax - period of April, 2007 to February, 2008 - Principles of natural justice - HELD THAT:- There is violation of the natural justice as verification was going on and still pending and even further carried out after passing of the impugned order. No such report is discussed in the order nor any reason assigned for none receipt of any report in the matter - appeal is allowed by way of remand to the Adjudicating Authority to hear the appellant, considering the verification reports as may be available, or to give further verification if required and thereafter to pass the reasoned order in accordance with law on this issue. Appeal allowed in part and part matter on remand.
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