2011 (2) TMI 306

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... By the impugned order, cenvat credit of Rs.1,32,33,287/ along with interest and equivalent amount of penalty, were demanded from the applicants. 2. The facts of the case are that the applicants are manufacturer as well as service provider. During the course of business activities, the applicants are procuring both input and input services. While procuring, input or input services, the applica....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... show cause notice was issued for disallowing the credit availed by them and demands were confirmed along with interest and penalty. Aggrieved by the said order, the applicants are before us. 3. The learned Advocate for the applicants submits that the applicants are having a common cenvat credit account for inputs and input services for their activities of providing services/manufacturing. He f....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ons made by the learned Advocate. We find that the applicants are having a common account and they have utilized the entire credit against the output services and have not utilised the credit for clearing manufactured products. As per provisions of Cenvat Credit Rules, no where it is specified that if an assessee is engaged in both activities i.e. manufacturing and providing services, the assessee....