TaxTMI 
TaxTMI 
2015 (10) TMI 2344
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....hese Orders-in-Appeal, the First Appellate Authority has upheld the Order-in-Original. 2. Shri Willingdon Christian (Advocate) appearing on behalf of the Appellants argued that the CENVAT Credit had been denied on the following:- i) Credit with respect to M.S. Bars, Angles, Channels, Plates, Steel Sheets, Cement & Plastic Sheets used in making support structures of capital goods, ii) CENVAT Credit paid on Consultancy Services availed by the Appellant. iii) CENVAT Credit balance of Education Cess utilized for payment of Secondary & Higher Education Cess as not admissible. 2.1 Regarding in-admissibility of CENVAT Credit on M.S. Bars, Angles, etc, learned Advocate argued that at this stage, he is contesting the issue only on tim....
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....he service provider was in the name of Vadodara unit and, therefore, the credit was correctly taken. That there was no provision under the CENVAT Credit Rules at that relevant time, that CENVAT Credit of such services has to be reduced to the extent of 50%. It was argued by the learned Advocate that proportionate taking of CENVAT Credit on the basis of certificates issued by ISD was made under Rule 7 of CENVAT Credit Rules, 2004 w.e.f. 17.03.2012 only. That before this amendment, entire service tax credit could be utilized by the Appellant in a particular factory of the Appellant. 2.3 That payment of Secondary and Higher Education Cess from CENVAT balance of Education Cess is admissible. 3. Shri Govind Jha (A.R.) a....
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....upra) in the year 2010. When an issue was disputable, then no intention to evade payment of duty or taking of wrong CENVAT Credit can be attributed on the part of the Appellant. Accordingly, 5 years extended period under Section 11A Proviso cannot be invoked. The demand period is from May 2009 to May 2010, whereas the Show Cause Notice was issued on 11.08.2011, which is clearly beyond the normal limitation period of 1 year and is required to be set aside. Accordingly, no penalties are imposable by the Appellant. 5. Second issue is regarding taking of CENVAT Credit on certain Consultancy Services availed by the Appellant. A total of Rs. 36,72,000.00 was involved as CENVAT Credit on these services out of which 50% credit (R....
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....d under the invoice of ISD does not exceed the amount of Service tax paid. b. Credit of Service exclusively used for exempted goods or exempt service is not distributed." 5. Therefore, the assessee is entitled to distribute the Cenvat credit on the input services on its manufacturing unit or other units providing the output services. The view taken in the order in appeal that the distribution of credit is for the advertisement of the product, which is not at all manufactured at Malur Unit, therefore, cannot be accepted. The finding recorded by the Appellate Authority that the assessee is entitled to take credit only in the unit where the product is manufactured is therefore not the mandate of Rule 7 of the Cenvat Credit Rules. 6. Unde....