Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2023 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 117 - AT - Central ExciseAvailment and utilisation of CENVAT credit on input services and capital goods at Daman unit - respondent was a manufacturer or not - input services and capital goods have a nexus qua the process of manufacture or not - HELD THAT:- In view of Rule 3 of CCR, the credit of either excise duty paid on input /capital goods or service tax paid on the input services have been termed as "Cenvat credit" and the said Cenvat credit is allowed to be availed by the manufacturer and service provider and utilised either for payment of excise duty or for payment of service tax. In the said provisions, there is no explicit condition that for manufacture and services provider separate account has to be maintained for availment of Cenvat credit and utilization of Cenvat credit. Therefore in the absence of any such restriction or prohibition, the assessee is free to maintain a consolidated Cenvat account and discharge the excise duty as well as the service tax. The CENVAT credit is kind of common kitty into which credit of duty paid on inputs and capital goods and credit of service tax paid on input services can be taken. Since the respondent is both a manufacturer and provider of output services from their Daman factory during the disputed period they are eligible for availment of Cenvat credit on input, capital goods and input services used for providing output services from the centralized service tax registration at the Daman factory and used for manufactured goods and for providing their output services. Further Cenvat being a beneficial piece of legislation, which was enacted for removing the cascading effect, the denial of credit citing procedural irregularities is unsustainable. It is a settled position that for availing the Cenvat credit the location from where the output service provided is not relevant. As long the service is provided by the service provider for which any input service is received and used for providing output service, the Cenvat credit on such input services shall be available and also for utilizing the said Cenvat credit for payment of service tax on the output service. Therefore, the location from where the service is provided and received is immaterial for availing the Cenvat credit on input services as well as for payment of service tax on the output services. Apex Court in the case of COMMISSIONER OF C. EX., AHMEDABAD VERSUS RAMESH FOOD PRODUCTS [2004 (11) TMI 103 - SUPREME COURT] held that there is no requirement of one-to-one co-relation in availment of Cenvat. The impugned order is correct and legal which does not require any interference - impugned order upheld - appeal of Revenue dismissed.
|