2022 (10) TMI 321

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..... h Section 73(2) of the Finance Act, 1994 along with interest under Rule 14 of CCR read with Section 75 of the Finance Act, 1994. He further imposed an equal amount as penalty under Rule 15(3) of CCR, read with Section 78 of the Finance Act, 1994. 2. We have heard learned Chartered Accountant for the appellant and learned authorized representative for the Revenue. 3. The undisputed facts of the case are that the appellant was providing "forward contract services" taxable under Section 65(45a) of the Finance Act 1994 and was paying service tax as applicable and was also availing the benefit of Cenvat credit on the "input services" used in providing these services. In addition to these services, the appellant was also engaged in trading acti .....

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..... evenue to have issued a show cause notice at all. He further submits that if Cenvat credit has been availed and has then been reversed, it is as good as not availing the Cenvat credit at all as has been held by the Supreme Court in Chandrapur Magnet Wires (P) Ltd. Vs. Collector of Central Excise, Nagpur [1996 (81) ETL 3 (SC)]. He also placed reliance on several other case laws in which the same view was taken. 6. Learned authorized representative for the Revenue supports the impugned order. 7. We find that Rule 6 of CCR places several obligations upon the assessee to avail Cenvat credit. If these obligations are not fulfilled, the assessee cannot avail Cenvat credit and if an assessee avails Cenvat credit without fulfilling the obligation .....

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..... r Rule 6(1) has been fully met. Further, Rule 6(2) requires separate accounts to be maintained but it does not specify in what form the accounts have to be maintained. If the credit is taken and thereafter reversed it is also a way of maintaining accounts and we do not find any restriction in the CCR against maintaining the accounts in this manner. Therefore, the appellant is fully compliant in terms of Rule 6(2) as well. As the appellant has fulfilled its obligation in terms of Rule 6(1) and also in terms of Rule 6(2), no case existed at all for issuance of the show cause notice in the first place nor it being confirmed by the impugned order. The show cause notice was issued and the impugned order was passed completely contrary to the law .....

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