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2022 (3) TMI 802 - AT - Service TaxCENVAT Credit - demand alongwith interest and penalty - appellant was providing taxable as well as the exempted service but was not maintaining a separate account nor was paying the amount as determined under sub-rule 3 A of Rule 6 of Cenvat Credit Rules, 2004 - October, 2008 to April, 2011 - contravention of Notification No.1/2006-ST dated 1.3.2006 as amended vide Notification No. 34 dated 25.4.2011 - HELD THAT:- The bare perusal of Section 67 & 68 of the Finance Act, 1994 read with Rule 6 of the Service Tax Rules, 1994 makes it clear that the demand confirmed is out of the scope of the SCN. Law is settled that the SCN is the basis of the litigation arising with respect to the proposal contained therein and the adjudicating authorities have to remain within the four bounds of the said SCN. The perusal of extract from the orders of adjudicating authorities shows clear acknowledgement that the appellant has reversed the entire Cenvat Credit alongwith with the interest. The findings confirming the demand of said amount are contrary to their own observations and thus are liable to be set aside. These finding are sufficient in addition to hold that the confirmation of demand of Cenvat Credit of ₹ 5,93,384/- is not only beyond the scope of SCN but is also contrary to the findings of the adjudicating authorities. Appeal allowed - decided in favor of appellant.
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