TMI Blog2023 (11) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... envat credit availed by the appellant amounting to Rs.51,45,637/- should not be recovered. Further, the original authority has passed the order confirming the demand of cenvat credit availed of the input service credit of Rs.51,45,637/-. It is to be noted here that there was a discrepancy in the show cause notice. Initially the said amount was called as an amount recoverable and subsequently the same amount was called as inadmissible cenvat credit availed. The fact is that the show cause notice does not establish that inadmissible cenvat credit of Rs.51,45,637/- was ever availed. Hon ble Telangana High Court in the case of Tiara Advertising [ 2019 (10) TMI 27 - TELANGANA AND ANDHRA PRADESH HIGH COURT] has held that it is not Revenue whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to Revenue that for the year 2011-12 and 2012-13, trading being exempted service, appellant was required to pay an amount of Rs.51,45,637/- under Rule 6(3)(i) of Cenvat Credit Rules, 2004. Therefore, a show cause notice dated 29.11.2013 was issued to the appellant, wherein the appellant was called upon to show cause as to why inadmissible cenvat credit availed by the appellant amounting to Rs.51,45,637/- should not be recovered from them under the provisions of Rule 14 of Cenvat Credit Rules, 2004. Appellant contested the show cause notice by stating that trading was not a part of the manufacturing activity and the same was carried out independently at the head office and the credit attributable to trading activity was not availed and, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o submitted that one of the options given under the said Rule 6 is that the assesse can reverse cenvat credit attributable to exempted service. He has submitted that even now they are ready to pay attributable cenvat credit out of cenvat credit availed on common input services which has gone into the exempted service trading. 3. Heard the learned AR for Revenue. Learned AR has submitted that the appellant s registered office was distributing input credit through ISD invoices to their various manufacturing units during the material period. He has submitted that it was the responsibility of the appellant as ISD and the manufacturing unit is the same legal person and it is a fact that appellant had taken credit of service tax paid in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xercised by the assesse out of the various options provided under Rule 6 of Cenvat Credit Rules, 2004. We also note that the appellant has undertaken to reverse cenvat credit attributable to the credit that has gone into trading. We are, therefore, of the view that the matter needs to be remanded to the original authority with the direction to recover that quantum of cenvat credit which is part of the cenvat credit availed on common input services and which is attributable to exempted activity of trading. For this purpose, we set aside the impugned order and allow the appeal by way of remand. Appellant is directed to co-operate with Revenue and provide with all the data necessary for passing such an order. 5. In above terms, the appeal i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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