TaxTMI 
TaxTMI 
2017 (5) TMI 44
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...., who have got four additional units, other than the unit at Udaipur (Rajasthan), located in H.P. Four units of H.P. are exempted, and they do not pay any duty of Central Excise, they being under area based exemption. During audit, the Revenue pointed out that Cenvat credit taken for banking and financial services, which are utilised also for these four units along with the Udaipur unit is non-Cenvatable and was reversed on 13.4.2009 accordingly. (ii) Later, the department issued Show Cause Notice demanding interest on the said reversed Cenvat amount without mentioning the quantum of said Cenvat amount which had been taken on banking and financial services. Interest liability was confirmed by the Order-in-Original as well as by the impugne....
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....thout any protest they are bound to pay interest for the period when the said amount was lying in their Cenvat account. The Revenue further states that originally the show cause notice has dealt with only with the interest part, and cites in support Hon'ble Supreme Court decision in the case of Pratibha Processors Vs. Union of India - 1996 (88) ELT 12 (SC) and Tribunal's decision in Pearl Polymers Ltd. Vs. CCE, Raigarh - 2004 (174) ELT 41 (Tri.-Del.). 6. After perusal of the case records and submissions of both the sides, it is clear that basic liability of Cenvat amount taken against the banking and financial services by the assessee appellant is not directly been under consideration during these proceedings. However, liability of interes....
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....ant time) only enforces the condition that credit of service tax attributed to services used in units exclusively engaged in the manufacture of exempted goods or providing exempted services shall not be distributed. The appellant's four manufacturing units are covered by area based exemption and no such duty is payable on the goods manufactured there. However, there is nothing on record to suggest that any of the services have been used only in the units manufacturing exempted goods. In fact, the nature of services tells us that these are used at the level of corporate of the manufacturing units of the assessee. Under the circumstances, restricting the distribution of Cenvat credit in terms of Rule 7 is not justifiable. The restrictions are....