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2023 (5) TMI 1151 - AT - Service Tax
CENVAT Credit - common input services used in providing taxable services and exempted services - non-maintenance of separate record for the Cenvat credit availed as per Rule 6(2) of the Cenvat Credit Rules, 2004 - non-payment of amount as provided under Rule 6(3) ibid - whether the adjudicating authority was correct in holding that once the credit availed on common inputs /service is reversed, the appellants are not required to reverse the amount as contemplated under Rule6(3A)(ii) of the said Rules?
HELD THAT:- Adjudicating authority has recorded a finding that there are plethora of decisions of various appellate forums wherein it was consistently held that when the entire Cenvat credit stands reversed, it is as good as not availing the credit. The learned Commissioner has relied upon the decision of High Court in the COMMISSIONER OF C. EX., BANGALORE-III VERSUS HIMALAYA DRUG COMPANY [2011 (2) TMI 1165 - KARNATAKA HIGH COURT]; COMMISSIONER OF CENTRAL EXCISE VERSUS ASHIMA DYECOT LTD. [2008 (9) TMI 87 - HIGH COURT GUJARAT] upheld by the Supreme Court in COMMISSIONER VERSUS ASHIMA DYECOT LTD. [2009 (3) TMI 975 - SC ORDER]; COMMISSIONER OF CENTRAL EXCISE VERSUS ASHIMA DYECOT LTD. [2008 (9) TMI 87 - HIGH COURT GUJARAT]; HELLO MINERALS WATER (P) LTD. VERSUS UNION OF INDIA [2004 (7) TMI 98 - ALLAHABAD HIGH COURT] and some decisions of the Tribunal.
The issue is no longer res integra. In the instant case, the appellants have reversed the entire credit availed by them on common inputs and to this extent the case law of LALLY AUTOMOBILES PVT. LTD. VERSUS COMMISSIONER (ADJUDICATION) , CENTRAL EXCISE [2018 (7) TMI 1679 - DELHI HIGH COURT] relied upon by the authorised representative is not applicable to the facts of the case as the issue decided in Lally Automobiles Pvt. Ltd. was about reversal of proportional credit and requirement of arriving at the amount to be reversed and on reasonable and logical principles.
No case has been made out by Revenue for setting aside the impugned order - impugned order does not suffer from any infirmity and so appeal filed by the Revenue is dismissed.