TMI Blog2019 (3) TMI 1053X X X X Extracts X X X X X X X X Extracts X X X X ..... of these appeals, the appellants have reversed the proportionate CENVAT credit in both the appeals by paying through challans as per the requirement of Rule 6(3A) of CENVAT Credit Rules. These payments made by the appellant needs to be verified as per Rule 6(3A) and for this purpose, both the cases are remanded back to the original authority to find out whether the appellant has reversed the proportionate credit as per Rule 6(3A) or not. Penalty u/r 15(1) - Held that:- The appellants are not liable to pay penalty under Rule 15(1) of the CENVAT Credit Rules because there is no proposal to impose penalty under Rule 15(1) and the proposal was only under Section 78 read with Rule 15(3) which the Commissioner (A) has held was not tenable in l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the appellant has availed CENVAT credit on the strength of bills issued by other authorized stations relating to free service of the vehicles sold by the assessee. It appeared that the assessee is not eligible for credit on the servicing charges done by the other authorized service stations as no servicing take place at the assessee s premises. After following the due process, the original authority confirmed the demand. Aggrieved by the said order, appellant filed appeal before the Commissioner (A) who after considering the submissions of the appellant remanded the matter back to the original authority for re-verification. 3. Heard both the parties and perused the records. 4. Learned counsel for the appellant submitted that the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re available to the Commissioner (A) but not considered by him. The appellant had obtained centralized registration from 27.5.2010 and therefore, the credit eligibility should be decided holistically and not show-room wise. He also submitted that in the show-cause notice dated 16.10.2012 for the period 2011-12 issued by the Department at para 8, it takes cognizance of the fact that the appellant had taken CENVAT credit of ₹ 16,74,282/- towards showroom credit and ₹ 32,67,060/- towards service station credit in their CENVAT credit account. But the Department has proceeded to disallow and demand the entire CENVAT credit in respect of service station credit without any justification. It is his further submission that with regard to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... VAT credit as per Rule 6(3A), the matter may be remanded back to the original authority to verify the compliance of Rule 6 by the appellant. As far as imposition of penalty is concerned, the learned counsel submitted that the Commissioner (A) observed that both the show-cause notice were issued within normal time period as per Section 73(1) of the Finance Act and therefore, the imposition of penalty under Section 78 of the Finance Act, 1994 read with Rule 15(3) of CENVAT Credit Rules cannot be imposed but the penalty under Rule 15(1) can be imposed. The learned counsel submitted that this finding is also not tenable under law because the Commissioner (A) cannot make out a new case which was not there before the adjudicating authority for im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant is not only trading the goods and spare parts and accessories but also providing taxable output service i.e., Business Auxiliary Service, Insurance Service and received commission which is subjected to tax. Further, I find that during pendency of these appeals, the appellants have reversed the proportionate CENVAT credit in both the appeals by paying through challans as per the requirement of Rule 6(3A) of CENVAT Credit Rules. These payments made by the appellant needs to be verified as per Rule 6(3A) and for this purpose, both the cases are remanded back to the original authority to find out whether the appellant has reversed the proportionate credit as per Rule 6(3A) or not. As far as imposition of penalty under Rule 15(1) i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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