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2023 (12) TMI 779 - AT - Central ExciseRecovery of CENVAT Credit alongwith interest and penalty - pro-rata adjustment, undertaken by the appellant, is in conformity with rule 6 of CENVAT Credit Rules, 2004 or not - adjustment for reversal done on annual basis - conformity with the prescription in rule 6(3) of CENVAT Credit Rules, 2004 pertaining to consequence of non-maintenance of separate records. HELD THAT:- The Tribunal, in M/S STAR AGRIWAREHOUSING & COLLATERAL MANAGEMENT LTD. VERSUS COMMISSIONER, CENTRAL EXCISE & SERVICE TAX, JAIPUR (RAJASTHAN). [2020 (10) TMI 198 - CESTAT NEW DELHI] has held that The procedure prescribed in Rule 6(3A) of the [Cenvat] Credit Rules is only to make the provisions of Rule 3 workable. By means of proportionate reversal the requirement of Rule 6(3) has been substantially satisfied. This is also provided in Rule 6(3D) of the Cenvat Credit Rules which was introduced at a later date. Thus, the provisions of rule 6, offering alternatives, are subject to preference on the prioritization of options. The claim of the appellant that they had apportioned input services between excisable goods and exempted service and followed up with reversal of credit to the extent attributable to the latter does not appear to have been examined in the order of the adjudicating authority. The impugned order set aside - matter remanded back to the original authority for a fresh decision after taking note of the submissions of appellant herein - appeal allowed by way of remand.
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