Appellant entitled to reverse Cenvat Credit under Rule 6(3A) & allowed input service credit The tribunal held that the appellant is entitled to reverse the Cenvat Credit proportionately under Rule 6(3A) and need not pay 5%/6% of the value of ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Appellant entitled to reverse Cenvat Credit under Rule 6(3A) & allowed input service credit
The tribunal held that the appellant is entitled to reverse the Cenvat Credit proportionately under Rule 6(3A) and need not pay 5%/6% of the value of exempted services. The matter was remanded for verification. Additionally, the appellant was allowed to avail Cenvat Credit on input service invoices despite being raised in the head office's name, as confirmed by the service provider. The demand for interest and penalties was set aside, and the case was remanded for further verification.
Issues involved: 1. Whether the appellant is entitled to reverse proportionate amount of Cenvat Credit under Rule 6(3A) of CCR, 2004 instead of paying 5%/6% of the value of exempted services and if they have provided evidence of such reversal. 2. Whether the appellant can avail Cenvat Credit on input service invoices raised in the name of their head office, even if the services were utilized in a different unit.
Analysis:
Issue 1: The appellant contended that they have reversed the proportionate Cenvat Credit under Rule 6(3A) for exempted services and paid the differential amount along with interest. The departmental representative argued that there was no evidence of such reversal. The tribunal found that the appellant had produced a Chartered Accountant's Certificate and detailed calculations showing the reversal of Cenvat Credit and payment made through challan. After considering this new evidence, the tribunal held that the appellant is entitled to reverse the Cenvat Credit proportionately and need not pay 5%/6% of the value of exempted services. The matter was remanded to the original authority for verification.
Issue 2: Regarding the second issue of availing Cenvat Credit on input service invoices raised in the name of the appellant's head office, the tribunal noted that the appellant provided a letter from the service provider confirming that the services were utilized in the Visakhapatnam unit despite the invoices being addressed to the Hyderabad office. Based on this clarification, the tribunal held that the appellant is entitled to the Cenvat Credit. The demand, along with interest and penalties, was deemed unsustainable and set aside. However, due to the absence of certain details before the original authority, the matter was remanded for verification purposes.
In conclusion, the tribunal disposed of the appeal by remanding the matter to the original authority for verification of the reversal of Cenvat Credit and the validity of availing Cenvat Credit on input service invoices.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
