TaxTMI 
TaxTMI 
2017 (2) TMI 539
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....able services and are registered with the service tax department. They are availing the facility of CENVAT Credit on capital goods and input services. During the period 2011-12 the appellants had availed credit of Rs. 13,26,136/- on rent-a-cab service and Rs. 40,626/- on air travel services as input services. They later reversed the said amount before issuance of show cause notice. The appellants did not pay interest on the credit reversed by them before utilisation. A show cause notice was issued proposing to appropriate Rs. 13,66,762/- being the credit which was already reversed by the appellant and proposing to levy interest and penalty. After due process of law, the original authority held that the appellant is liable to pay interest on....
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....ry of input service during the relevant time when the credit was reversed and therefore the levy of interest and penalty is legal and proper. 5. I have heard the rival submissions. The issue whether assessee is liable to pay int3erest and penalty for the irregularly availed credit prior to utilisation is settled by the decisions relied upon by the appellant. In the instant case, the commissioner (Appeals) in para 7 has discussed referring to the pending/closing balance of credit amount of the appellant. T is seen from this credit account that the appellant was not having sufficient balance in the input service category at the time of reversing the irregularly availed credit. For this reason the Commissioner (Appeals) has held that the de....
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....icants under Rule 57A of the said Rules. In the case of Commissioner of Central Excise, Coimbatore v. Lakshmi Technology & Engineering Indus. Ltd. - 2011 (23) S.T.R. 265 (Tri.-Chennai), the Tribunal held that the manufacturer entitled to use the credit from a common pool to which different categories of specified excise duties, customs duty and service tax allowed to be taken as credit. Similarly, a provider of taxable service is also entitled to take credit of specified excise duty, additional duty of Customs and Service Tax in respect of input service and utilised credit from these sources for the purpose of paying service. Rules permit taking of credit under a common pool and permit the use of the credit from common pool for different pu....
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....e to one co-relation of CENVAT Credit availed on input services towards payment of output services. 6. It is not disputed that the appellant has availed credit which is available to them and there is no provision for segregation of input/Cenvat credit for payment of excisable goods and for payment of service tax. The said issue came up before this Tribunal in the case of Forbes Marshall Pvt. Ltd v. Commissioner of Central Excise, Pune - 2010 (258) E.L.T. 571 (Tribunal) 2010 (20) S.T.R. 186 (Tribunal) wherein this Tribunal has observed that there is no provision in Cenvat Credit Rules, 2004, for segregation of input services utilized in manufacture or to provide output service. Following the said decision, we maintain, here also that ther....