TMI Blog2019 (11) TMI 896X X X X Extracts X X X X X X X X Extracts X X X X ..... to buy peace with the revenue. Primarily the allegation against the appellant, was in respect of seven services detailed in the preceding paragraphs and the appellant s plea before the adjudicating authority also revolved around the said seven services only. As such, we are in agreement with learned Counsel that the dispute should revolve only around the disputed seven services which were subject matter of the show cause notice. The fact that the entire credit availed in respect of the said seven services stands reversed by appellant, is required to be verified by the lower authority, for which purpose, we set aside the impugned order and remand the matter to the Original Adjudicating Authority for doing the needful. Appeal allowed by way of remand. - Service Tax Appeal No. 70185 of 2018-[DB] - FINAL ORDER NO-71762/2019 - Dated:- 3-9-2019 - HON BLE SMT. ARCHANA WADHWA, MEMBER (JUDICIAL) AND HON BLE MR. ANIL G. SHAKKARWAR, MEMBER (TECHNICAL) Shri N. Venkataraman, Senior Advocate along with Shri Nishant Mishra And Shri Nikhil Gupta, Advocates for the Appellant Shri Rajeev Ranjan, Additional Commissioner Authorised Representative for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n their factory in various financial years and infact the present demand was also based upon the audit objection conducted in the year whereas the show cause notice stands issued after a period of 4 years. Though they drew the attention of adjudicating authority to various decisions of higher courts laying down that issuance of show cause notice after the normal period of limitation, from the date of the audit, has to be held as barred by limitation, but the said plea was not adverted to. 3. The Commissioner while adjudicating the present matter took into consideration all the submissions of the appellant as regards the reversal of entire Cenvat credit availed on the disputed seven services, but observed that apart from the said seven services, the appellant has availed Cenvat credit on various other input services and it is not their case that the credit also stands reversed in respect of the other services. As regards limitation, he observed that inasmuch as, the appellant was not bringing the factual position to revenue s notice and knowledge, invocation of extended period is justified. Accordingly, he confirmed the demand, as proposed in the notice, along with co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces, the observations made by the Original Adjudicating Authority are outside the scope of the dispute. He explains that apart from the said seven services which were being used by the appellant for providing taxable as well as exempted output services, they were also availing the credit in respect of various input services, which were being used by them exclusively for providing taxable output services. As such, in the absence of any dispute about the availability of Cenvat credit in respect of input services, used exclusively for providing taxable output services and the dispute being restricted to only common input services used for providing both types of output services, it was not open to the Original Adjudicating Authority to refer to the credit availed in respect of the other services. Having accepted that the appellant has reversed the entire credit in respect of disputed output services, he should have vacated the demand. 5. Learned Senior Advocate also submits that the legal dispute is no more res-integra and stands settled by various decisions laying down that once the proportionate credit stands reversed in respect of the services used for exempted outpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llahabad High Court s decision in the case of Commissioner of Central Excise Vs M/s Triveni Engineering Industries Ltd. reported at 2015 (317) ELT 408 (All). However, he fairly agrees that a part of the demand may fall within the limitation period. 7. Countering the arguments of learned Sr. Advocate, learned Authorised Representative appearing for revenue reiterates the findings of Original Adjudicating Authority. 8. After having considered the submissions made by both the sides, we note that the legal issue stands decided in favour of the assessee in catena of judgments. It is well settled law that provisions of Rule 6 (3) would become invocable in case where an assessee avails the Cenvat credit on various inputs or input services which stands utilized by him commonly for providing exempted as well as taxable activities. However, if the assessee reverses the proportionate credit availed in respect of various inputs/input services, which stands utilized for exempted output activities, it has to be held as if no credit was ever availed by them in respect of such exempted activities and the provisions of Rule 6(3) become non-applicable. Though there are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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