9911796707
TMI Blog2014 (11) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... ling Service', which includes various services like, stuffing, maintenance of containers, loading and unloading of containers and other like activities. The appellant also utilizes various input services for providing taxable output service. 2. The appellant have further maintained separate Books of Account for the separate CFS. In the CFS Annex, the total output service is taxable wherein in the CFS Sector-2, part of the services is taxable and the other parts is not taxable as the services were utilized for export. For the period 2008-09, 2009-10 and 2010-11, the appellant on its own understanding under the provisions of Rule 6(3)(2) of the Cenvat Credit Rules, 2004 worked out proportionate CENVAT Credit to be disallowed by taking th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat Credit Rules" and recorded the finding that the appellant have filed a centralized return and have opted not to maintain separate account for exempted service. Therefore, the artificial distinction made by the appellant for selecting input/input service credit on part of CFS is without any authority of law. 3. Being aggrieved, the appellant is in appeal before this Tribunal. The main ground taken by the appellant is that by virtue of Rule 6(6)(v), the appellant was not required to reverse any amount of input tax credit as it does not provide any exempted service. It is further argued that the services provided by the appellant is not taxable, being utilized for export and no reversal is called for under the provisions of Rule 6(6)(v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spective of the quantity of the rebate. The goods exported under Rule 13 and by virtue of explanation (2) to this rule goods cleared for making the yarn exported cannot therefore be considered to be goods exempted from payment of duty. The appellant further relies on the ruling of the Hon'ble Bombay High Court in the case of Repro India Ltd.- 2009 (235) ELT 614 (Bom), wherein the Hon'ble High Court held that in the case of inputs used in dutiable as well as exempted final products, the exempted product exported outside India, the Revenue had demanded to pay an amount equal to 10% of the sale price of the exempted goods exported by the exporter based on Rule 6(3) of Cenvat Credit Rules and it was held that CENVAT Credit is allowed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les and accordingly, the amount disallowed by the impugned order is correct and justified. 5. Having considered the rival contentions, I find that the appellant have no other exempted service except being attributable to export i.e. services rendered for facilitating export which are not taxable by virtue of export. Therefore, I find that no reversal is required under the provisions of Rule 6(3)(ii) read with Rule 6(3A) as the appellant has availed credit suo motu mistakenly. Further, I hold that the appellant is entitled to the benefit as provided under Rule 6(6)(v) of the Cenvat Credit Rules, 2004. In this view of the matter, the impugned order is set aside and appeal is allowed with consequential relief, if any. (Dictated and pronounce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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