TaxTMI 
TaxTMI 
2018 (5) TMI 1303
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.... are that the appellants are engaged in the manufacture of 'Fabric Screen labels' falling under Chapter 58079090, 'Fabric H/T VD Labels' falling under Chapter 48211090, 'Paper S/S VD Labels' falling under Chapter 48114100 and 'Ribbons and Substrates' falling under Chapter 58089090 of CETA, 1985. During the course of audit, it was observed that the appellant had availed CENVAT credit on common input services like security services, technical knowhow services, commissions etc. which were used in manufacture of excisable goods and also in exempted services i.e. trading of goods viz. 'Woven Labels'. The appellant was using the above mentioned common input services and availing and utiliz....
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....le in law as the same is contrary to the binding judicial precedents. He further submitted that the impugned order does not take cognizance of the fact and merely demanded 6% of the value of the exempted service without appreciating that reversal of Rs. 4.56 lakhs would have fulfilled the requirement of law, He further submitted that there was no decision taken on their submission throughout the proceedings. He further submitted that the impugned order does not take cognizance of the fact that 6% of the value of the exempted service can only be demanded if the other options are not exercisable. He further submitted that the impugned order summarily negates exercise of option in Rule 6(3)(iii) on the ground that worksheet / CA certificate wa....
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....der and submitted that as per the observation of the learned Commissioner(Appeals), the appellant has failed to submit the worksheet showing that they have reversed the proportionate CENVAT credit. 5. After considering the submissions of both sides and perusal of the material on record and the various decisions relied upon by the appellant, I find that the appellant has reversed the proportionate CENVAT credit on 22/02/2016 before the adjudication order was passed. Though the appellant has submitted that he has submitted the detailed worksheet relating to his trading activity and has also disclosed everything in their return, but the authorities have not considered this aspect at all. Further I note that the Tribunal in the c....
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....authority, he has not given any finding as to whether the reversal already made satisfies the test of proportionate reversal in terms of quantum of reversal. Hence, we are of the considered opinion that the matter is to be remanded to the original adjudicating authority to verify whether the amount of Cenvat credit already reversed along with interest satisfies the requirement of proportionate reversal. We also make it clear that there is no justification for demand of the amount equivalent to 10%/5% of the value of electricity wheeled out. The appellant should be given an opportunity to argue their case before the original adjudicating authority who is directed to pass order expeditiously within a period of three months of the date of rece....