TMI Blog2018 (6) TMI 1143X X X X Extracts X X X X X X X X Extracts X X X X ..... ron steel items. Also, Since the appellant’s principal business is not receiving deposits and lending money in any manner, it cannot be said that they fall within the category of NBFC. The provisions of Rule 6(3B) will be applicable only to a banking company and financial institution including a non banking financial company. Since the appellant does not fall within any of the categories, the provisions of Rule 6(3B) will not be applicable to the appellant. Appeal allowed - decided in favor of appellant. - Ex. Appeal No. 50353 of 2018 - Final Order No. 52257/2018 - Dated:- 20-6-2018 - Hon ble Mr. V. Padmanabhan, Member ( Technical ) And Hon ble Ms. Rachna Gupta, Member ( Judicial ) Sh. B. L. Narasimhan Ms. Diva, Advocates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the impugned order in which cenvat credit amounting to ₹ 3,52,37,222/- was ordered to be reversed alongwith interest and penalty equal to the duty. Aggrieved by the decision, the present appeal has been filed. 3. With the above background, we heard Sh. B. L. Narasimhan, ld. Advocate for the appellant and Sh. M. R. Sharma, ld. AR for the Revenue. 4. The arguments of the appellant are summarised below: (i) The requirement of reversal of 50% of the credit availed, finding place in Rule 6(3B) is applicable only to Banking Company and a Financial Institution including a Non Banking Financial Company . Since the appellant does not fall within any of the above categories, the requirement of reversal of 50% is not applicable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e services procured from such service providers, on reverse charge basis. The Department is of the view that such cenvat credit availed is required to be restricted to 50% on a monthly basis. Accordingly, demands stand raised. 8. The provisions of Rule 6(3B) ibid are reproduced below for ready reference: (3B) Notwithstanding anything contained in sub-rule (1), (2) and (3) a Banking Company and a Financial Institution including a Non-Banking Financial Company, providing taxable service specified in sub-clause (zm) of clause (105) of Section 65 of the Finance Act, shall pay for every month an amount equal to 50% of the cenvat credit availed on inputs and input services in that month. Rule 6(3B) of the Cenvat Credit Rules, 2004 po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the meaning assigned to it as per the various Sections of the Reserve Bank of India Act, 1934 which are as under: Banking Company means a banking company as defined in Section 5 of the Banking Regulation Act, 1949 (10 of 1949) and includes the State Bank of India, any subsidiary bank as defined in the State Bank of India (subsidiary Bank) Act, 1959 (38 of 1959), any corresponding new bank constituted by Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and any other Financial Institution notified by the Central Government in this behalf . Further, reference in this regard has also been made to the Section 5(c) of Banking Regulation Act, 1959 which defines Banking company as follows ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any manner; (iii) such other non-banking institution or class of such institutions, as the Bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify ; 10. Since the appellant s principal business is not receiving deposits and lending money in any manner, it cannot be said that they fall within the category of NBFC as above. The definition of financial institution under clause (f) of the Section 451 of the RBI Act is as under: (c) Financial Institution means any non-banking institution which carries on its business or part of its business by any of the following activities namely; (i) The financing whether by way of making loans or advances or otherwise of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity specified in sub-clauses (i) to (xviii) of clause (c) of Section 2 of the Industrial Development Bank of India Act, 1964 . Appellants activity being industrial, which falls under the exclusion category of financial institution, they will not be covered within the definition of Financial Institution as above. 11. We have already observed that the provisions of Rule 6(3B) will be applicable only to a banking company and financial institution including a non banking financial company. Since the appellant does not fall within any of the categories, we are of the view that the provisions of Rule 6(3B) will not be applicable to the appellant. 12. The adjudicating authority has observed that even though the appellant is not re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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