2017 (2) TMI 155

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.... well as for providing the aforesaid services. They are maintaining consolidated records for availment/utilisation of cenvat credit on inputs and input services pertaining to manufacturing activities as well as services provided by them. The show-cause notice was issued proposing demand of service tax paid by utilising the cenvat credit availed from a common pool. The adjudicating authority confirmed the demand imposed penalties and demanded interest. Being aggrieved by that Order-in-Original the respondent filed appeal before the Commissioner (Appeals), who vide impugned order allowed the appeal and set aside the Order-in-Original. Therefore revenue is before me. 2. Shri A.B. Kulgod, ld. Asstt. Commissioner (AR) appearing on behalf of t....

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....d input services used for both the activities and pay the excise duty and service tax from such consolidated account. I find that the availment of cenvat credit in respect of excise duty service tax etc. and utilisation thereof has been provided in Rule 3 of Cenvat Credit Rules, 2004, which is reproduced below:- Rule 3. Cenvat Credit (1) A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of - (i) the duty of excise specified in the First Schedule to the Excise Tariff Act, leviable under the Excise Act; (ii) the duty of excise specified in the Second Schedule to the Excise Tariff Act, leviable under the Excise ....

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.... (xa) the Secondary and Higher Education Cess on taxable services leviable under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007); and (xi) the additional duty of excise leviable under section 85 of Finance Act, 2005 (18 of 2005 ) 5. From the reading of the above rule, it is clear that the credit of either excise duty paid on input or service tax paid on the input services have been termed as cenvat credit and the said cenvat credit is allowed to be utilised either for payment of excise duty or for payment of service tax. In the said provisions, there is no explicit condition that for manufacture and services separate account has to be maintained. Therefore in the absence of any such restriction or proh....