Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

CCE Belapur Versus Bharat Bijlee Ltd.

2017 (9) TMI 1373 - CESTAT MUMBAI

CENVAT credit - input services - services used attributable to trading activity - Held that: - the issue is squarely covered by the decision of the Tribunal in Godfrey Phillips India Ltd. & Ors. [2016 (12) TMI 436 - CESTAT MUMBAI], where it was held that The said credit needs to be reversed in proportion to the trading turnover and the total turnover - demand of reversal of cenvat credit is sustained. - Extended period of limitation - Penalty - Held that: - in the case of Godfrey Phillips In .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Agarwal, Addl. Commissioner (AR) for the appellant Ms. Mansi Patil, Advocate for the respondent ORDER Per : Raju This appeal has been filed by Revenue against order of Commissioner (Appeals) dropping the demand of reversal of cenvat credit in respect of input services used attributable to trading activity. 2. Ld. AR relied on the grounds of review. He further argued that the issue is squarely covered by the decision of the Tribunal in case of Godfrey Phillips India Ltd. & Ors. vide Order no. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

butable to trading activity. She further argued that they have reversed the cenvat credit required along with interest and filed a letter dated 16.03.2011 accepting their liability. She also relied on the decision of Tribunal in the case of Kundan Cars 2016 (43) STR 630. She further argued that no penalty should be imposed in these circumstances. 4. I have gone through the rival submissions. 5. I find that the issue is squarely covered by the decision of the Tribunal in Godfrey Phillips India Lt .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or exempted goods were cleared. The decision in the case of SKF India (supra) and Clariant Chemicals (supra) have been given after considering the traded activities as well. In the case of SKF India Ltd., the Tribunal has observed as under: - 15. The next contention of the appellant was that the credit relating to categories of services specified in Rule 6(5) of the Cenvat Credit Rules, 2004 shall be allowed. We have gone through the said Rule 6(5). Said sub-rule starts with non-obstanta clause .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t case, the dispute is between the manufacturing activity and that relating to trading activity. We, therefore, out rightly reject the contention of the appellant. In case of Clariant Chemicals, the Tribunal has observed as follows: - 18. Learned counsel for the appellant has submitted that they should be given the benefit of the then Rule 6(5) of the Cenvat Credit Rules, which provides entire credit of service tax in respect of specified services, unless such service is used exclusively in or i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng the decisions of the Tribunal on the issue, we hold that benefit of Rule 6(5) of Cenvat Credit Rules, 2004 cannot be extended in respect of trading activities. The said credit needs to be reversed in proportion to the trading turnover and the total turnover. Relying on the aforesaid decision, demand of reversal of cenvat credit is sustained. 6. I also find that in the said decision with respect to imposition of penalty following has been observed:- 5. We find that in the case of Clarient Chem .....

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 been admitted by the Director of the Company. Thus, there is a suppression of fact and in our view the extended period of limitation is correctly invoked. 20. We have also gone through the findings of the Commissioner relating to the extended period of limitation and we entirely agree availment of cenvat credit the primary responsibility that the credit has been correctly taken is on the manufacturer or availer of cenvat credit as per Rule 9 (5) and 9 (6). Rule 9 (5) very clearly provides tha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

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

Go to Mobile Version