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2014 (10) TMI 476 - AT - Central ExciseReversal of CENVAT Credit - The short question for consideration is the factor "P" mentioned in sub-rule (3A) of Rule 6. Should it be the value of common input services credit as contended by the appellant or should it be the value of total Cenvat credit taken on input services. - Held that:- From a reading of the Rule 6(3A), three factors are required for determination of the Cenvat Credit attributable to exempted goods and exempted services. The first factor is "M" which denotes the total value of exempted services provided plus the total of exempted goods manufactured. The second factor is "N" which denotes the total value of taxable and exempted services provided plus the total value of dutiable and exempted goods manufactured and the third factor is "P" which denotes the total Cenvat Credit taken on input services during the financial year. It should be noted that "P" denotes the total Cenvat Credit taken on input services during the financial year and not the total of the Cenvat Credit taken on common input services. This is also evident from other two factors, namely, "M", "N" which provides for taking into account, the total of the value of services provided and the total value of goods manufactured. The same principle applies in the case of determination of provisional credit required to be reversed every month. If the appellant had chosen not to avail Cenvat Credit on common input services, the liability would have been only ₹ 2.07 crore and inasmuch as the appellant has already reversed an amount of ₹ 62 lakhs (approximately), we direct the appellant to make a pre deposit of ₹ 1.40 crore within a period of eight weeks and report compliance by 18/09/2014. On such compliance, pre deposit of the balance of dues adjudged against the appellant shall stand waived and recovery thereof stayed during the pendency of the appeal - Partial stay granted.
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