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2017 (12) TMI 1275 - AT - Service TaxScope of SCN - CENVAT credit on Capital goods - Held that: - It is a settled principle of law that no demand can be sustained unless the same is based on a proposal in the SCN - Once the SCN do not propose to deny any CENVAT Credit availed on items treated as capital goods, the same could not have been taken up and adjudicated in the Impugned Order - the demand of INR 7,63,18,307/- confirmed in impugned order on this issue is not sustainable and is set aside. Excess utilisation of credit - adjustment with the shortfall - Held that: - it is evident from the Table that the Appellant was entitled to further utilise credit amounting to INR 20,66,664/- and INR 90,78,879/- in the months of November and December, 2004 and there is no bar in law to restrict the utilisation of such quota of entitlement in the subsequent months. Thus, the entitlement of INR 1,11,45,561/- (INR 20,66,664/- + INR 90,78,897/-) is in excess of INR 59,77,551/- which is the short fall in the month of January, 2005 - reliance placed in the case of Vijyanand Roadlines Ltd. Vs. Commissioner of Central Excise, Belgaum [2006 (12) TMI 56 - CESTAT,BANGALORE] where it was held that utilisation is not restricted to monthly or quarterly basis and it can be utilised at any point of time - the demand of INR 59,77,551/- confirmed on this issue is thus not sustainable and is set aside. Appeal allowed - decided in favor of appellant.
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