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2020 (4) TMI 601 - AT - Service TaxReversal of CENVAT Credit - common input services have been used in the manufacture of excisable goods as well as in the trading activity - non-maintenance of separate records - recovery of 5%/6% of the profit margin of traded goods in accordance with Rule 6(3)(i) of the CENVAT Credit Rules, 2004 - HELD THAT:- Inasmuch as at the Thane unit, the appellant had taken credit on the basis of the ISD invoices issued by their Head Office which includes credit on common input services attributable to trading activity undertaken from their depots situated all over India; and also the credit availed on input services used in the manufacturing activity and distributed among all the three manufacturing unit including the Thane unit. In these circumstances, directing the Thane unit to reverse the proportionate credit attributable to trading activity of other two unit would be incorrect and cannot be sustained in law. Therefore, the appellant’s Thane unit would be required to reverse the CENVAT Credit availed on common input services relatable to trading activity availed by them at their Thane unit on the invoices issued by their Head Office. To ascertain the quantum of CENVAT Credit availed at Thane unit and attributable to the trading activity, the matter is remanded to the adjudicating authority - Appeal allowed by way of remand.
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