2017 (7) TMI 410

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....inance Act, 1994 as provider of renting of immovable property service by debit of CENVAT credit account. The credit so utilised between April 2009 and March 2014 was computed at Rs. 76,41,802 and was sought to be disallowed on the ground that the credit availed of duty paid on input/tax paid on input services was in relation to the manufacturing activities and not to the renting of the said property. 2. Order-in-original no.PUN-EXCUS-001-COM-041-14-15 dated 13th February 2015 of Commissioner of Central Excise, Pune I impugned before us has confirmed the recovery of the entire credit that was utilised allegedly without the authority of law, along with interest thereon, besides imposing penalties of Rs. 12,74,625 which pertains to the peri....

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....h are elaborated in sub rule (B of Rule 7 of the Cenvat Credit Rules. These restrictions do not cover cross utilisation of credit of Excise and Service Tax, as a general proposition. xxxxxx 7. In ER-1 return, in Table at Sr. No. 8, in column (9), details about Service Tax as specifically listed. On careful analysis of the said format, the intention appears to be to permit cross utilisation of the credit of Excise Duty and Service Tax.' 4. On an appeal filed by Revenue against this decision of the Tribunal, the Hon'ble High Court of Bombay [2016 (42) STR 3 (Bom)] has held that- '3.. The Tribunal, therefore, has rightly come to the conclusion that there are certain restrictions on the utilisation of particular type o....

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....the returns filed as manufacturer and as service provider by the same assessee. Undoubtedly, it makes a reference to- The Cenvat credit on inputs, capital goods and input services which are used for manufacture of goods or for provision of services is available in a common pool and can be used for payment of excise duty and/or service tax. 6. We therefore find it inconceivable that these are applicable to the present dispute. However in near similar circumstances, the Tribunal in Commissioner of Central Excise, Coimbatore v. Lakshmi Technology & Engineering Indus. Ltd [2011 (23) STR 265 (Tri-Chennai)] has held that- 6..... In other words, a manufacturer of excisable goods is entitled to use the credit from a common pool to which di....