2016 (8) TMI 93

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....course of audit it had been observed by the Audit Party that they had provided Erection, Commissioning and Installation Service during the financial years 2007-08 and 2008-09 (up to September 2008) and availed abatement of Rs. 2,12,58,860/- in terms of Notification No. 1/2006-ST dated 1.3.2006 and simultaneously taken and utilized the cenvat credit amounting to Rs. 2,06,541/- on the input services during the said period.  It was noticed that the exemption Notification No. 1/2006-ST shall not apply where,- (i) the cenvat credit of duty on inputs or capital goods or the cenvat credit of service tax on input services, used for providing such taxable service, has been taken under the provisions of the Cenvat Credit Rules, 2004; or (ii)....

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.... contention of the assessee and held that reversal of credit done by the respondent was under a bona fide belief availed to be admissible and when reversal had already been made and tax had already been deposited with interest, the claim ought to have been accepted, and accordingly allowed the appeal. 6. Learned counsel for the appellant contended that both the Adjudicating Authority as well as the CCE(A) have clearly observed that the assessee had wrongly claimed the cenvat credit and once there is a finding recorded by both the Appellate Authorities that the claim of cenvat credit was wrongly availed, the Tribunal merely because the amount had been reversed and paid, ought not to have accepted. He contended that such an assessee ought no....

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....record.  In our view, the order of the Tribunal is just and proper and is not required to be interfered with.  The Tribunal has taken into consideration the finding that admittedly during the course of adjudication the assessee submitted that they have reversed the total credit availed of by them during March 2008 to the extent of Rs. 2,06,541/- along with interest of Rs. 17,093/- and once they reversed the total credit and deposited the same, they became entitled to the benefit of Notification.  The Tribunal further found that subsequent reversal of credit even after utilization of the same and clearance of the final product will relate to a situation as if no credit was ever availed, and Tribunal on finding of fact found th....

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....- "6. The findings rendered by the Honourable Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd. (supra) are clearly applicable to the present matters.  In that case also, the case of the Department was that reversal of credit entries is not permitted by the rules.  The assessee is not entitled to remove the copper wires without payment of duty since credit of the duty paid on the inputs used in the manufacture of copper wire had already been taken in accordance with Rule 57A.  Once appropriate entries have been made in the register, there is no rule under which the process could be reversed.  It is true that the assessee has not maintained separate accounts or segregated the inputs utilised for manufacture ....