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2022 (3) TMI 189 - CESTAT NEW DELHICENVAT Credit - Input Service Distributors - credit denied by the Department on the ground that after the amendment to the definition of ‘input service’ w.e.f. 01.03.2001 in section 2(l) of the CENVAT Credit Rules, 2004, the appellant was not entitled to avail CENVAT Credit on such services - periods 2012-2013, 2013- 2014 and 2014-2015 - period April 2015 to March 2016, April 2016 to March 2017 and April 2017 to June 2017 - recovery of CENVAT credit alongwith interest and penalty - invocation of extended period of limitation - principles of natural justice - HELD THAT:- The appellant has produced the reply given by the appellant to the show cause notice to all the services namely communication, maintenance and repair, courier services, security services, photocopy services, architect services, insurance services, real estate/ actuarial charges, rent-a-cab and outdoor catering - All that has been stated by the adjudicating authority is that the appellant has not been able to show any nexus between ‘the use of the service’ and ‘manufacture and clearance of the final products’. The adjudicating authority was required to examine the reply and deal with it rather than rejecting the contention by merely stating that the appellant has not been able to show any nexus. It has fairly been stated by learned counsel for the appellant that in regard to two services namely, rent-a-cab and outdoor catering, the appellant is not assailing the order on merits, but is assailing the order only on the quantification - also the reply filed by the appellant regarding the quantification of the demand of duty has not been considered at all by the adjudicating authority and in fact no finding has been recorded by the Commissioner - also, the Commissioner has not considered the issue raised by the appellant that notice could not have been issued to the recipient of service distributed by an ISD and no finding has been recorded. Invocation of the extended period of limitation - HELD THAT:- The issue relating to invocation of the extended period of limitation has been dealt with by the Commissioner in a very cryptic manner, though a detailed reply had been filed by the appellant. It is, therefore, a fit case where the matter should be remitted to the adjudicating authority for passing a fresh reasoned order after taking into consideration the reply submitted by the appellant - the adjudicating authority need not examine on merits whether the appellant was entitled to take credit on rent-a-cab or outdoor catering, as it has been stated by the learned counsel appearing for the appellant that it is not assailing the demand of credit on these two services. The Commissioner shall, for these two services, examine the quantification part only. Appeal allowed by way of remand.
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