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of <h1>Tribunal remands matter to address discrepancies in CENVAT Credit utilization.</h1> The Tribunal remanded the matter to address discrepancies in observations regarding CENVAT Credit utilization in ST-3 returns. It instructed the ... CENVAT Credit - transfer of credit on de-merger of company - Held that:- By letter dt.18.02.2011, the Appellant requested to allow Service Tax credit under Input Service Distributor in the name of M/s Adani Gas Ltd; in view of de-merger of city gas distributor business from M/s Adani Energy Ltd to M/s Adani Gas Ltd. - it is a factual dispute and as the Commissioner (Appeals) remanded the matter, the Adjudicating authority should have also examined the facts in Para 6 of the impugned order - Appeal disposed of. Issues:1. Correctness of observations in the impugned order regarding CENVAT Credit.2. Eligibility of Appellant to avail CENVAT Credit by transfer under Rule 10 of CENVAT Credit Rules, 2004.3. Consideration of submissions regarding CENVAT Credit utilization in ST-3 returns.Analysis:Issue 1: The main contention revolved around the correctness of observations in the impugned order concerning CENVAT Credit utilization. The Commissioner (Appeals) remanded the matter with specific observations related to the Appellants' declaration of CENVAT Credit in their ST-3 returns. The Appellant argued that the observation in Para 6 of the impugned order was incorrect, leading to the disallowance of CENVAT Credit. The Tribunal acknowledged the factual dispute and directed the Adjudicating authority to examine the facts in Para 6.Issue 2: The Appellant sought to avail CENVAT Credit under Input Service Distributor in the name of M/s Adani Gas Ltd due to a de-merger of city gas distributor business from M/s Adani Energy Ltd. The Appellant contended that they were eligible for CENVAT Credit transfer under Rule 10 of CENVAT Credit Rules, 2004, as M/s Adani Energy Ltd had transferred ownership to M/s Adani Gas Ltd. The Tribunal noted that the issue was not raised before the Commissioner (Appeals) and deemed it a factual dispute, instructing the Adjudicating authority to consider the submissions regarding CENVAT Credit transfer.Issue 3: The Tribunal modified the impugned order to include a directive for the Adjudicating authority to consider the submissions of the Appellant concerning CENVAT Credit utilization in their ST-3 returns, as highlighted in Para 6 of the impugned order. The appeal was disposed of with these observations, emphasizing the need for a thorough examination of the factual and legal aspects surrounding the CENVAT Credit issue.In conclusion, the judgment addressed the discrepancies in the impugned order's observations, the eligibility of the Appellant for CENVAT Credit transfer, and the necessity to consider submissions regarding CENVAT Credit utilization in ST-3 returns. The Tribunal provided detailed instructions for the Adjudicating authority to reevaluate the matter in light of the presented arguments and factual circumstances.
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