TMI Blog2022 (10) TMI 1077X X X X Extracts X X X X X X X X Extracts X X X X ..... f CENVAT paid on input services and there is no such requirement for one to one co-relation and there is no bar on the utilization of CENVAT credit availed on input services for payment of tax on excisable goods so manufactured and cleared. This issue is already settled in favour of the Appellant in various cases cited by the Appellant. Although the cases referred to are not identical in terms of the factual position, however, they decide the general principles that in respect of utilization of credit there is no requirement of one to one correlation and cross utilisation of credit is permissible. C.B.E. C. vide Letter F. No. 381/23/2010/862, dated 30-3-2010, clarified that Cenvat credit on inputs, capital goods and input services whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, the Assistant Commissioner of Central Excise, Customs Service Tax, Rourkela-II Division disallowed the CENVAT Credit of Rs.26,68,059/- under Rule 14 of the CENVAT Credit Rules, 2004 read with Section 11A of the Central Excise Act, 1944 and ordered for recovery along with appropriate interest. Penalty of equal amount was also imposed under Rule 15 of the CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. On Appeal, the Ld.Commissioner(Appeals) upheld the Adjudication Order and rejected the Appeal before him on the ground that the CENVAT Credit which has been utilized for payment of Service Tax on output service has been availed as a manufacturer and should have been utilized for payment of duties relate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Heard both sides and perused the appeal records. 5. As submitted by the Ld.Advocate, the Finance Minister in his Budget Speech stated as follows: 148. There remains the service tax. I propose to take a major step towards integrating the tax on goods and services. Accordingly, I propose to extend credit of service tax and excise duty across goods and services. In order to neutralize the revenue impact of such extension, and keeping in mind the mean Cenvat rate, I propose to enhance the rate of service tax from 8 per cent to 10 per cent. 6. I find that in terms of Rule 3(1) a manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Any contra view taken would defeat the very scheme of credit. It has been held in numbers of cases that as far as the inputs or input services are availed on payment of duty and as long as they are capable of being used in the provision of Service Tax and manufacture of excisable goods, credit cannot be denied and that there is no requirement of one-to-one correlation. 8. Further, Hon ble High Court of Bombay, in the case of CCE, Pune-1 v. S.S.Engineers [2016 (42) STR 3 (Bom.)] observed as follows: Cenvat credit of input services-utilization thereof-cross utilization no infirmity in Tribunal findings that the said credit can be utilized for payment of excise duty on goods manufactured by assessee and that such cross utilization is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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