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2019 (3) TMI 445 - CESTAT MUMBAICENVAT Credit - commonly used input services used for providing the output service as well as for undertaking the trading activity - non-maintenance of separate records - Rule 6 of CCR - appellant claimed to have reversed the proportionate credit - Held that:- The reversal of Cenvat Credit as claimed by the appellant was not inconformity with Rule 6 of the Rules. Therefore, denial of Cenvat benefit in the adjudication order is proper and justified. Demand of interest - Rule 14 of CCR Held that:- The said rule was amended w.e.f. 17.03.2012. The effect of amendment is that the word “or” was replaced with word “and”, resulting thereby that Cenvat Credit unless utilized for payment of service tax on the output service, the interest demand cannot be fastened on the Assessee. However, since the reversal particulars and available balance in the Cenvat account during the disputed period was required to be verified, this matter should also go back to the original authority for fact finding with regard to payment of interest by the appellant considering the provisions of both un-amended and amended Rule 14 of the rules. Penalty - Held that:- The provisions of Rule 15(3) of the rules read with Section 78 of the Act cannot be invoked inasmuch as there was no element of suppression, misstatement etc., on the part of the appellant in defrauding the Government Revenue - penalty set aside. Appeal allowed in part and part matter on remand.
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