TMI Blog2024 (1) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... vat credit availed on account of service tax paid on input services, even if a part of the input services were utilized in the manufacture of dutiable final products. It is also noted that central excise duty paid on inputs which were going into the manufacture of exempted final products was not availed by the appellant. This Tribunal in the case of COMMISSIONER OF C. EX. S.T., UDAIPUR VERSUS SECURE METERS LTD. [ 2016 (6) TMI 1260 - CESTAT NEW DELHI] has held that even if subsequent to clearance, the availed cenvat credit is debited, then it is as if the cenvat credit was never availed. The said view of this Tribunal was affirmed by Hon ble Rajasthan High Court in UNION OF INDIA VERSUS SECURE METERS LTD. [ 2017 (2) TMI 1350 - RAJASTHA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise duty on inputs going into the manufacture of medicaments which were chargeable to central excise duty and did not avail cenvat credit of central excise duty paid on inputs which were going into the manufacture of medicaments which were exempted. However, the appellant was also taking cenvat credit of service tax paid on various services which were common inputs to both dutiable and exempted final products. However, the appellant was not maintaining separate accounts in respect of services which were utilized for exempted final products and dutiable final products. Investigations were initiated against the appellant. During investigation, the appellant informed Revenue that the appellant was taking cenvat credit of service tax paid on c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notice and also submitted written submissions during the course of hearing. Appellant submitted to Revenue that after issue of show cause notice, appellant also debited an amount of Rs.5,48,128/- on 01.06.2013 on account of cenvat credit availed on input services attributable to the exempted final products. It further submitted that on 27.06.2013, appellant debited another amount of Rs.19,70,875/- in similar manner. Appellant further submitted that the entire cenvat credit of Rs.26,81,413/- for the disputed period on service tax paid on services utilized for both dutiable and exempted products was reversed by the appellant and, therefore, the proceedings may be closed. However, the original authority did not appreciate the submis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f availed cenvat credit is before clearance or after clearance of the goods and once the cenvat credit is reversed, it is as if the same has never been availed. He has further submitted that the said decision of this Tribunal has been affirmed by Hon ble Rajasthan High Court as reported at 2017 (354) ELT A32 (Raj.). He has further argued that the appellant has reversed entire cenvat credit availed on account of service tax paid on services which were utilized by them in respect of dutiable and exempted final products and that the appellant has reversed entire cenvat credit and in view of the above stated judicial decisions, appellant has never availed the said cenvat credit. Further, he argued that it is undisputed fact that the appellant h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final order. 7. We find that the issue is no more res integra. Commissioner (Appeals) has granted relief to the assessee by following the Larger Bench decision of the Tribunal in the case of Franco Italion Co. Pvt. Ltd. [2000 (120) E.L.T. 792] as also the Hon ble Supreme Court decision in the case of Chandrapur Magnet [1996 (81) E.L.T. 3 (S.C.)]. He has also relied upon the decision of Hon ble Allahabad High Court in the case of Hello Minerals Water (P) Ltd. [2004 (174) E.L.T. 422 (All.)]. We have also taken note of the list of decisions supplied to us by the learned advocate for the respondents, laying down that such reversal, even if subsequent to clearance of final product, is appropriate and result in a situation as if no credit wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee by arriving at the conclusion that once reversal has already been made, no penalty could have been imposed. The order passed by the Commissioner (Appeals) came to be affirmed by the Customs, Excise and Service Tax Appellate Tribunal under the order impugned dated 30-6-2016. From perusal of the facts stated in the order passed by the Commissioner (Appeals) and the Tribunal, it is apparent that the findings are based upon the law laid down by Hon ble Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd., Nagpur v. Collector of Central Excise, Central Excise Collectorate, Nagpur reported in (1996) 2 SCC 159. In the case aforesaid, the Apex Court held that no penalty could have been imposed after reversal of the Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
