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2019 (11) TMI 896 - AT - Service TaxCENVAT Credit - input services - common input services being used exclusively for providing taxable services or were being commonly used for providing both the types of services - Revenue entertained a view that they are required to pay 10% of value of the exempted services - HELD THAT:- It is well settled law that provisions of Rule 6 (3) would become invocable in case where an assessee avails the Cenvat credit on various inputs or input services which stands utilized by him commonly for providing exempted as well as taxable activities. However, if the assessee reverses the proportionate credit availed in respect of various inputs/input services, which stands utilized for exempted output activities, it has to be held as if no credit was ever availed by them in respect of such exempted activities and the provisions of Rule 6(3) become non-applicable. In the present case, the appellant had taken a categorical stand that not only the proportionate credit but the entire credit availed in respect of the said services stands reversed by them as the appellant intends to buy peace with the revenue. Primarily the allegation against the appellant, was in respect of seven services detailed in the preceding paragraphs and the appellant’s plea before the adjudicating authority also revolved around the said seven services only. As such, we are in agreement with learned Counsel that the dispute should revolve only around the disputed seven services which were subject matter of the show cause notice. The fact that the entire credit availed in respect of the said seven services stands reversed by appellant, is required to be verified by the lower authority, for which purpose, we set aside the impugned order and remand the matter to the Original Adjudicating Authority for doing the needful. Appeal allowed by way of remand.
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