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TMI Blog2013 (10) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... vailed the input and input service credit in respect of the manufacturing activity and pay the excise duty on the goods manufactured in their factory. They also availed the credit of input and input services in respect of erection and commissioning of the machinery and also pay the service tax on the said activity. During the scrutiny, it was found that appellant availed credit of service tax on the services which are required in connection with erection and commissioning service but utilized the same for payment of excise duty on the manufacture of sugar machinery and parts thereof. Accordingly, a Demand notice was issued and the impugned order was passed after hearing the party. 2. The issue in this case is whether the CENVAT credit of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within their respective domains and there is nothing in law to permit cross operation of such accounts for utilization of such credit beyond the respective laws. The learned AR also argued that the appellant is registered separately for the manufacturing activity and as a provider of output service and there are separate authorities for the two. Each authority in assessment stage is entitled to examine the admissibility of each of the CENVAT credit entry in the context of registered activity under its domain, jurisdiction and competence. In the absence of segregated account, the authority shall be at loss to examine the issue to its conclusive state. He also advanced various arguments why it is administratively necessary to have separate a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various liabilities and includes any duty of excise on any final product as also service tax on any output service (other situations also covered under the said sub-rule, which are not relevant in the present case). Thus, we find that Rule 3 of the CENVAT Credit Rules, 2004 does not stipulate maintaining separate account as a manufacturer and as a service provider. Third proviso to sub-rule (4) of Rule 3, provides that no credit of the additional duty leviable under sub-section (5) of Section 3 of the Customs Tariff Act, shall be utilized for payment of service tax on any output service. Similar restrictions are in other proviso. We also note that there are certain restrictions on the utilization of particular type of duties which are elabo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion by the Department is that the respondent who is both a service provider and a manufacturer should maintain two separate accounts one in respect of credit attributable to inputs, capital goods and services meant for excisable goods and credit attributable to capital goods, inputs and services attributable to the service provided by them. Common CENVAT Credit Rules have been framed in terms of powers conferred by Section 37 of the Central Excise Act, 1944 and Section 94 of the Finance Act, 1994. Rule 3(1) enables a 'manufacturer' or a 'provider of taxable service' to take credit of specified duties and utilize them to discharge duty liability under Rule 3(4) of the CENVAT Credit Rules. A credit can be utilized for payment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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