2016 (7) TMI 430

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....or export on payment of duty under Notfn No.29/2004-CE dt. 9.7.2004 and also availing full exemption for domestic clearances under Notfn No.30/2004-CE dt. 9.7.2014. They had been availing cenvat credit of duty paid on inputs and capital goods and service tax paid on input services in the manufacture of both exempted and dutiable goods under the provisions of Cenvat Credit Rules, 2004. However, they did not maintain separate cenvat credit accounts for dutiable and exempted clearances. On verification of the cenvat credit documents, it was noticed that the assessee had not reversed properly the proportionate cenvat credit relating to exempted goods cleared every month as mandated under Rule 6 (3A) and Rule 6 (3) (ii) of CCR, but had reversed ....

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.... 21.8.2014 dropped the proposals made in the OIO. Aggrieved by the said order, Revenue preferred an appeal before Commissioner (Appeals) who set aside the OIO and confirmed the demand as proposed in the notice. Hence this appeal filed by appellant before Tribunal. 2. Shri M.Saravanan, Ld. Consultant appearing on behalf of the appellant submits that the dispute is with regard to service tax credit taken by the appellant on input services. The contention of the Revenue is that input services were used for both dutiable and exempted activities and hence proportionate credit @ 57.94% has to be reversed as per Rule 6 (3A) of the CCR 2004. He submits that adjudicating authority has recorded a finding at para 10 & 11 of his order dt. 21.8.2014 ....

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....ervices (Export) Rs.38,484/- (v) Commission Agency Ser.(Export) Rs.5,35,149/- (vi) Testing & Analysis Services Rs.293/- (vii) Forex Advisory Services Rs.3,218/- Total Rs.6,06,431/-   2.2 Ld. counsel also submits that as per Rule 6(5) of CCR, till 31.3.2011, the appellants are eligible to take 100% cenvat credit on the following services, as it is used for both dutiable as well as exempted activity :- S. No. Category of Service Amount (Rs.) 1. Repair and Maintenance Services 1,322 2. Management Consultancy Services 9,940 3. Consultancy Services 18,025   TOTAL 29,287   He submits that since the above services were received prior to 1.4.2011 when....