2009 (9) TMI 850

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....t availed and utilised by them. An amount of Rs. 7.6 lakhs paid by them in August, 2007 has been appropriated towards this demand. Apart from demand of interest on the above amount, there is a penalty of over Rs. 3.7 crores on the appellant under Rule 12/15 of the Cenvat Credit Rules, 2002/04 read with Rule 25 of the Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act. The present application seeks waiver of pre-deposit and stay of recovery in respect of the outstanding dues. After examining the records and hearing both sides, we note that a major part of the aforesaid amount of Rs. 3.7 crores, amounting to Rs. 2.99 crores is the amount of Cenvat credit on input services which remained unutilized and accumulated prio....

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....rought into force, it is now permitted to utilize the Service Tax Credit to pay Excise duty and vice versa. Accordingly, the Service Tax Credit Register separately maintained by us in our ERP system is now merged with the existing CENVAT Credit Register. Consequently, the balance lying as on 30-12-2004 has been merged by transferring the same to the relevant CENVAT Credit Registers maintained by different plants on the basis of actuals and in the ratio of such actually identifiable credit. Attached herewith is a statement in detail of the credits transferred to the CENVAT Credit Register. The above is in accordance with the transitional provisions or Rule 11 of the CENVAT Credit Rules, 2004. You are requested to verify the same." P....

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....have not examined this matter on merits. 2. The second largest demand is of an amount over Rs. 59 lakhs which was also found to have been wrongly utilised by the assessee for payment of service tax on output services. The two output services are - (1)     Non-Resident Management Consultant service, and (2)     Goods Transport Agency service. On both these services, the assessee paid service tax in their capacity as recipient of the services. It is their case that, by virtue of Rule 2(r) of the Cenvat Credit Rules, 2004, they should be deemed to be providers of the above two services. We have also consulted the above provision of law and we find that, according to that provision, a 'provide....