TMI Blog2018 (3) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... follow the option of reversing the credit on proportionate basis or full credit on common input services which satisfies the condition for one of the options under Rule 6. Admittedly, reversal of credit of proportionate amount prior to 01/04/2011 on common input services and fully post 01/04/2011 and payment of full duty liability on goods otherwise eligible for Notification 64/95-CE (post 2011) substantially satisfies the condition to be followed by an assessee in case of availing credit on common input services. The Hon’ble Supreme Court in CCE & CUS vs. Precot Meridian Ltd. [2015 (11) TMI 323 - SUPREME COURT] examining reversal of credit after a period of almost 6 years held that such subsequent reversal will amount to non-utiliz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nitiated against the appellant concluded by the impugned order. The Original Authority held that an amount of ₹ 1,17,57,573/- should be paid by the appellant in terms of Rule 6 (3) (i) and also imposed a penalty of equivalent amount under Rule 15 (2) readwith Section 11AC of the Central Excise Act, 1944. 2. The learned Counsel appearing for the appellant submitted that for the years 2009-2010 and 2010-2011, the appellant did cleared dutiable goods as well as exempted goods and avail input services. They were paying 5% of value of exempted goods in terms of Rule 6 (3) (i) of Cenvat Credit Rules. From 01/04/2011 trading activity was specifically recognized as exempted service. Thereafter the appellants reversed full credit on all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t or payment of differential duty post 2011 was involved, the same was discharged with applicable rate of interest for such delay. As such, it is prayed that the impugned order may be set aside. 5. The learned AR submitted that the appellant did not follow the provision of Rule 6 (3) (i). Admittedly, they had exempted services as well as exempted goods during the material time. When the option is exercised to pay 5%/6% of value of exempted goods, the same cannot be varied and having availed such option and thereafter reversing the credit will not satisfy the provision of Cenvat Credit Rules. The appellants belated action of payment cannot overcome the statutory regulation, as mentioned, under Rule 6 (3) (i). 6. We have heard both the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... common input services. We note that subsequent reversal with applicable interest will also satisfy the provision of Rule 6. We note that in M/s Beekay Engineering Corporation vs. CCE, Raipur 2017 (11) TMI 1468 CESTAT NEW DELHI, the Tribunal observed as follow :- 10. Learned Counsel for the appellant relied on various decisions to contend that such proportionate reversal will satisfy the requirement for application of the ratio of the decision of the Supreme Court and High Courts as mentioned above to conclude that the exemption or abatement shall be available to the appellant as if Cenvat credit has not been availed on the input services. We have examined the decision of Hon ble Supreme Court in Chandrapur Magnet Wire Pvt. Ltd.- 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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