Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

CCE, Indore Versus ZYG Pharma Pvt. Ltd. And Vice-Versa

2016 (8) TMI 286 - CESTAT NEW DELHI

Demand of interest on reversal of Cenvat credit - common input service Held that:- interest required to be paid appeal dismissed - decided partly in favor of revenue. - Excise Appeal No.E/995/2008 EX [DB], Excise Appeal No.E/1301/2008 EX [DB] - FINAL ORDER No. 52500-52501/2016 - Dated:- 4-7-2016 - S. K. Mohanty, Member (Judicial) And R. K. Singh, Member (Technical) For the Appellant : Shri. Yogesh Agarwal, D.R. For the Respondent : Shri. Archit Agarwal, C.A. ORDER PER R. K. SINGH Revenu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as exempted goods. 2. The ld. Advocate for the respondent pleaded that the appellant took total credit of ₹ 4,17,918/- on common input services which it reversed even prior to the issuance of the Order-in-Original. Therefore, the Revenue s appeal has no substance. He cited the judgment in the case of Jost s Engineering Co. Ltd. vs. CCE, Mumbai-III 2015 (320) ELT 157 (Tri.-Mum.). 3. Regarding the appeal filed by the respondent assessee the ld. Advocate admitted that the amount was reversed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ce of the primary adjudication order. In the case of Jost s Engineering Co. Ltd. (Supra) (in para 5.2) the Hon ble Tribunal dealing with similar circumstances held as under:- 5.2 In the present case it is an admitted fact the appellant did not maintain separate accounts for the input services used in or in relation to the manufacture of product dutiable as well as exempted products even though they maintained such accounts in respect of inputs. Therefore, two options were available to them, i.e. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

credit taken along with interest thereon. Therefore, Rule 6(3)(i) will not have any application, when a credit is taken wrongly and the same is reversed along with interest as it tantamounts to non-taking of the credit. The Hon ble High Court of Allahabad in the Hello Minerals. Water (P) Ltd. case cited supra clearly held that reversal of Modvat credit amounts to non-taking of credit on the inputs and even if such reversal was done after the clearance of the goods the said action amounts to non .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

inputs used in the manufacture of exempted final products. In view of these decisions, we are of the considered view that the reversal of credit by the appellant on the entire service tax taken along with interest thereon both in respect of dutiable goods as well as exempted goods amounts to non-availing of credit and, therefore, the provisions of Rule 6(3)(i) are not attracted and the confirmation of demand by the adjudicating authority directing the appellant to pay an amount at the rate of 5 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version