2018 (10) TMI 1540

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....r Chapter 73 of CETA, 1985 and are availing CENVAT Credit facility under CENVAT Credit Rules, 2004. During the course of audit of the unit by the Department, it was noticed that the appellant apart from manufacturing activity is also engaged in trading activity from the same premises. They are availing and utilizing the CENVAT Credit of security service and Telephone services which are common input services for both manufacturing and trading of goods. The trading is an exempted service under Section 66D (e) of the Finance Act, 1994, and is covered under negative list. Further, it was also observed that the appellant has not maintained separate account in respect of inputs/input services used for dutiable and exempted service as per Rule 6(2....

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....hat the impugned order is contrary to the binding judicial precedent. He also submitted that the Commissioner (A) has not considered the calculation submitted as per Rule 6(3A) of CCR, 2004 and has forced the appellant to pay 6% by mis-interpreting the provisions of Rule 6 of CCR, 2004. He further submitted that CENVAT Credit gives three alternatives to reverse credit if separate books of accounts are not maintained and the rule nowhere specifies any default rule to be followed in case of non-maintenance of separate books of accounts. Learned counsel further submitted that as per their calculation, the total credit to be reversed is amounting to Rs. 49,647/- which the appellants have reversed by exercising the option given under Rule 6(3A) ....