TaxTMI 
TaxTMI 
2017 (11) TMI 4
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....erms of Notification 6/06-CE without availing input credit and the appellant is also registered as a 100% EOU for the adjacent premises. In addition, they also engaged in trading activity. The appellant avails benefit of cenvat credit on the inputs and input services and utilized the same for clearing of final products which are dutiable as well as traded. It was noticed that various common input services like Telephone, Transportation, Security Services, insurance, rent paid, business travel, customs clearance charges and housekeeping and maintenance charges were common inputs on which service tax was paid and the credit was availed. It is the allegation in the show-cause notice that the appellant has not followed the provisions of Rule 6 ....
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.... application was also accepted. It is also his submission that for the period 01.04.2007 to 31.03.2008, entire reversal along with 24% interest was discharged and accepted by the Revenue hence there is no dispute for this period. He would submit that the dispute is regarding the interest payable for the period 01.04.2008 to 28.02.2009. He would submit that during the relevant period the provisions of Cenvat Credit Rules 6(3) were amended and various clauses were added wherein it was left to an assessee to reverse the input credit attributable to the inputs consumed in exempted products as per clause (h) on or before 30th June of the succeeding financial year, He would submit that for the period 01.04.2008 to 28.02.2009 (a period in question....
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....cts along with interest at the rate of 13%. 5.2. Learned adjudicating authority has sought to demand interest on the appellant at the rate of 24% for the period in question. In my considered view, adjudicating authority has fallen in error of provisions of Rule 6(3) of the Cenvat Credit Rules 2004, as it was relevant for the period in question. During the period in question, Rule 6(3) provided for reversal of proportionate cenvat credit attributable to the inputs and input services which are used for the manufacturing of the exempted goods, then the manufacturer shall pay back the proportionate credit based upon the formula in the said Rule. The appellant herein, and it has to be done monthly but subsequently for the entire per....
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....e to pay interest at the rate of 24% per annum from the due date of the payment deeper perusal of the sub-rule indicates that if any assessee reversed the cenvat credit before 30th June of the succeeding financial year, he need not have to pay any interest. In the case in hand the appellant has already discharged the interest at the rate of 13% on the common inputs and input services attributable to the exempted goods. In view of this, the impugned order of the adjudicating authority seeking interest at the rate of 24% is unsustainable and liable to be set aside and I do so. 5.3. As regards the equivalent amount of penalty imposed by the adjudicating authority, I find that there is no reason to visit the appellant with such a penalty....