TaxTMI 
TaxTMI 
2018 (4) TMI 484
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....dit utilized by them is inadmissible in terms of Rule 6 (3) of Cenvat Credit Rules, 2004 and Rule 6 (4A) of the Service Tax Rules, 1994. It was alleged that in terms of Rule 6 (4B) the conditions for suo moto adjustments have not been followed by the Appellant. In terms of said Rule the excess amount paid may be adjusted with a monetary limit of one lakh for a relevant month or quarter as the case may be. That the Appellant has taken credit of an amount more than 20% of the total service tax liability in contravention of Rule 6 (3) (c) of the Cenvat Credit Rules, 2004 and have adjusted an amount more than Rs. One lakh which was more than the limit specified in Rule 6 (4B) (iii) and also they did not inform the same to the department. Hence ....
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....e is no excess utilization of credit. He relies upon the Tribunal's order in case of Vijayanand Roadlines Ltd. 2007 (7) STR 219 (TRI). He also submits that if the books are recasted/ recomputed then there is no excess utilzation of credit. He relies upon the Tribunal order in case of Fedders Lloyd Corporation Vs. CCE 1995 (78) ELT 207 (TRI) and Ipitron Times Ltd. 1993 (67) ELT 430 (TRI). He submits that the demand is based upon Service Tax Returns and hence there is no suppression and extended period of limitation is not invokable. He submits that since there is no suppression and malafide intention, no penalty can be imposed. 3. Shri M. Suresh, ld. Deputy Commissioner, AR appearing for the revenue supports the impugned order. He reiterate....
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....-taxable output service, there is a restriction on utilization of the credit. As per the above rule, the utilization is restricted to 35% of the amount of service tax payable on such output service. At any point of time, the service provider can arrive at his liability which is service tax payable on his output service. He should calculate 35% of his liability. From out of the accumulated credit, he has allowed to utilize up to 35%. There is no indication that the service tax credit accumulated during the earlier period would lapse. In other words, there is no question of lapse of the credit legally taken. In the present case, from May 2003 to March 2004, even though the appellant had input credit available, he chose to pay tax only through....