TMI Blog2022 (3) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... ope of the SCN. Law is settled that the SCN is the basis of the litigation arising with respect to the proposal contained therein and the adjudicating authorities have to remain within the four bounds of the said SCN. The perusal of extract from the orders of adjudicating authorities shows clear acknowledgement that the appellant has reversed the entire Cenvat Credit alongwith with the interest. The findings confirming the demand of said amount are contrary to their own observations and thus are liable to be set aside. These finding are sufficient in addition to hold that the confirmation of demand of Cenvat Credit of ₹ 5,93,384/- is not only beyond the scope of SCN but is also contrary to the findings of the adjudicating authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be short paid. Accordingly, vide Show Cause Notice No.1613 dated 16.04.2014 an amount of ₹ 30,90,221/- was proposed to be recovered alongwith proportionate interest and appropriate penalty. While adjudicating the said Show Cause Notice the Original Adjudicating Authority had dropped the demand of service tax of ₹ 30,90,221/-. However had confirmed the demand of Cenvat Credit amounting to ₹ 5,93,384/- alongwith the penalty of the same amount. Being aggrieved the appeal was preferred before the Commissioner (Appeals) who has rejected the appeal finding no infirmity in the Order in Original. Still being aggrieved the appellant is before this Tribunal. 3. I have heard Shri Jatin Mahajan, ld. Counsel for the appellant and M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide the impugned SCN dated 16.4.2014 has proposed the following demand:- 1. Service Tax ₹ 30,90,221/- (₹ 15,59,873/- + ₹ 15,30,348/-) should not be recovered from them under proviso to Section 73(1) of the Finance Act,1944 read with Rule 14 of Cenvat Credit Rules, 2004. As assessee have deposited Service Tax an amounting to ₹ 4,42,251/- vide challan No.0039 on 31.12.2012, the same is liable to be appropriated in the Govt. Exchequer. 2. Interest should not be demanded and recovered from them under Section 75 of the Finance Act, 1994. As the assessee have deposited interest amount of ₹ 1,32,369/- vide challan No.00039 dated 31.12.2012, the same should be appropriated in the Govt. account. 3. Penalty sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit of Rule 6 (3) (ii) of Cenvat Credit Rules, 2004 to the appellant on reversal of Cenvat credit availed on input services utilized by the appellant in providing both taxable as well as exempted services, since the appellant has reversed the entire Cenvat credit of ₹ 5,93,384/- availed by them during the period from October, 2008 to June 2012 alongwith interest. Also, the Cenvat credit availed by the appellant was treated to be inadmissible since they were not entitled to avail the same as per the provisions of Rules, 2004. 6.1 I find that the appellant has contended that they had maintained separate records in respect of input services used in taxable and exempted services. However, the appellant failed to provide the docu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecovered from the appellant along with interest and penalty is imposable on them 11. The perusal of above extract from the orders of adjudicating authorities shows clear acknowledgement that the appellant has reversed the entire Cenvat Credit alongwith with the interest. The findings confirming the demand of said amount are contrary to their own observations and thus are liable to be set aside. These finding are sufficient in addition to hold that the confirmation of demand of Cenvat Credit of ₹ 5,93,384/- is not only beyond the scope of SCN but is also contrary to the findings of the adjudicating authorities. The order under challenge is accordingly held to be unreasonable. Hence is hereby set aside. Consequent thereto, appeal s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
