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2015 (11) TMI 657 - CESTAT BANGALORE

2015 (11) TMI 657 - CESTAT BANGALORE - 2016 (41) S.T.R. 523 (Tri. - Bang.) - Denial of CENVAT Credit - GTA Service and Manpower Recruitment Agency services - Non maintenance of separate accounts - Held that:- Admittedly they were reflecting the entire facts in the returns filed by them to the Revenue. Revenue was aware of the fact that appellant is manufacturing dutiable as also exempted final products and is availing CENVAT credit of service tax paid on the entire services so received by them. .....

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, percentage of production of exempted goods was to the tune of 0.10% and during 2007-08, it was 0.04%. It is only in the year 2009 that the percentage increased to 1.22%. Inasmuch the major part of the appellants final product was dutiable, which was being cleared on payment of duty, the availment of CENVAT credit in respect of various services to the extent of 100%, cannot be held to be reflecting on any malafide on the part of the assessee so as to invoke the longer period of limitation. As .....

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Asst. Commissioner (AR) ORDER Per : ARCHANA WADHWA The appellant is engaged in the manufacture of ayurvedic medicaments bearing brand name as well as generic medicaments. Whereas branded medicaments are liable to duty of excise, generic are exempted from payment of duty vide Notification No.3/2005. 2. During the period April 2005 to March 2009, the appellant availed CENVAT credit of service tax paid on the Goods Transport Agency (GTA) service and Manpower Recruitment Agency services and as per .....

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cation admitted that they were utilizing GTA services for both dutiable as also exempted final products and they reversed an amount of ₹ 552/- being the input credit attributable to the GTA services. As regards Manpower Recruitment Agency services, they contended that such services were being used by them only for the packing, labeling and loading of the dutiable goods inasmuch as their dutiable goods are to the extent of 95% and only 5% exempted goods are being manufactured by them, the u .....

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case of Nicolas Piramal (I) Ltd.: 2009 (244) E.L.T. 321 (Bom.), to reject the appellant s contention that as they have reversed the proportionate CENVAT credit availed on GTA service they are under no legal obligation to pay 10% of the value of the final product. Accordingly, demand to the tune of ₹ 1,63,470/- stand confirmed against them along with imposition of penalty. Hence the present appeal.. 4. After hearing both the sides duly represented by Mr. Lalit Mohan Chandna, Consultant for .....

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ates to input services, in which case, it is difficult to maintain separate records. Further, the High Court of Karnataka in the case of Himalaya Drugs: 2011 (271) E.L.T. 350 (Kar.) and High Court of Madras in the case of ICMS Corporation Ltd.: 2015 (315) E.L.T. 388 (Mad.) has held that such reversal will amount to as if no credit was availed. However, though the appellants have contested that they have not used common manpower supply services for exempted goods also but it seems impossible that .....

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