2017 (3) TMI 994

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....ellant under Rule 15(3) of cenvat Credit Rules, 2004. 2. The Appellant has been represented by Shri Rahul Tangri, Id. Advocate and Revenue has been represented by Id. AR, Shri R.K. Manjhi. 2. The brief facts are that the appellant assessee namely M/S Secure Meter Ltd had taken inadmissible Cenvat credit of service tax paid on commission paid by them for supply of electrical energy meters to their buyers, which are mainly State Electricity Boards, The Revenue issued Show Cause Notice (SCN) dated 09.10.2009 to the appellant assessee. The said SCN was confirmed by the impugned order confirming the said demand of cenvat credit along with interest; the said cenvat credit had already been reversed by the assessee. 3. The Id. Advocate for....

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....vice-versa as per Rule 3(4) of Cenvat credit rules, 2004. In this regard reliance is placed on Depatt's Circular No. 381/23/2010/862 dated 30.03.2010 and the following case laws: a. Pipavav Shipyard ltd. V. CCE" 2016 (41) STR 151 (TnAhrnd.) b. CCE v. Lakshrni Technology & Engineering Indus. Ltd. - 2011 (23) S.T.R. 265 (Tn.- Chennai) c. SS Engineers v. CCE, 2015 (38) STR 614 (Tn- Mum.). upheld by Bombay High Court at 2016 (42) STR 3 (Born.). iii) Entire demand is barred by limitation and no penalty is imposable, as no fact was suppressed from the department. 4. The Id. AR for the Revenue reiterates the findings given in the impugned order. In addition, he submits as under: i. It is settled law that a....

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....sessee appellant is an independent activity and the input services used for trading activity has no nexus with the final product manufactured by the assessee. vii. Record of trading activity has to be kept separate and it has nothing to do with the input services used for manufacture of final product. 5. After having carefully considered the facts of the case, the submissions of both the sides and the case laws cited, it appears that out of the total demand confirmed of Rs. 68,03,841 /-"the demand of Cenvat credit of Rs. 37,27,241/- has been confirmed citing the provisions of Rule 7 of Cenvat Credit Rules"2004, whereas the Show cause notice issued to the appellant nowhere mentions the provisions of Rule 7 of the Cenvat credit Ru....

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....ted 14.9.2016 in case of Genus Power Infrastructure Ltd Vs. CST, Jaipur-I, which held that service tax paid by the Commission agent is available as credit to assessee, who is engaged in the manufacture of goods as well as who renders certain services. In other words, if an assessee has got registration under Central Excise and pays Central Excise duty for the goods manufactured by them, and pays service tax for the services rendered by them, they would be entitled to have common cenvat account in which credit of taxes paid on inputs as well as on input services can be taken. Consequently, this amount of cenvat credit of Rs. 13,83,183/- is admissible to the assessee appellant and they are free to utilize the same either for payment of duty o....