TMI Blog2015 (10) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... h inputs. If inputs is removed as such, in that case the assessee is required to reverse the credit availed on the inputs and not required to reverse proportionate credit on inputs service pertaining to such goods and required 6% /8% of the value of such goods. As revenue has failed to produce any evidence to show that appellant was involved in the trading activity, it may cleared inputs as such. In these set of facts, Cenvat credit taken by the assessee on the input which are cleared as such, is attributable to proportionate reversal is not supported by cogent reasons. Therefore, as per the provisions of Rule 3(5) of Cenvat Credit Rules, 2004 the assessee was to reverse the Cenvat credit availed on inputs cleared as such. Therefore, I hold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lent amount of penalty was also proposed to be imposed. 3. The adjudicating authority confirmed the proposal made in the show cause notice. On appeal, learned Commissioner (Appeals) held that the assessee is required to reverse the proportionate credit attributable to trading activity as per the Rules as amended w.e.f. 1.4.2011. Against such order, both the parties are in appeal, Revenue is in appeal on the ground that formula adopted by learned Commissioner (Appeals) is not correct and assessee is in appeal on the ground that as trading activity is already declared as exempted input from 1.4.2011 and prior to that there were not required to reverse the proportionate credit. 4. Heard the parties. Considered the submissions. 5. Lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the defence taken by the assessee that they have cleared inputs as such and no verification has been done to that effect whether the assessee has cleared inputs as such or was involved in the activity of trading. Show cause notice has been issued only on the basis of figures shown in the balance sheet. For removal of inputs as such, Rule 3(5) clearly states that if inputs is removed as such, the assessee is required to reverse only Cenvat credit availed on such inputs. In judicial terms which has been contended by the assessee as mentioned hereinabove, if inputs is removed as such, in that case the assessee is required to reverse the credit availed on the inputs and not required to reverse proportionate credit on inputs service pertaining ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
