TaxTMI 
TaxTMI 
2018 (12) TMI 84
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....order. 2. Brief facts leading to these appeals are that the appellants are registered with the Central Excise Department and are availing Cenvat credit of duty paid on inputs/input services and capital goods under Cenvat Credit Rules, 2004 (CCR, 2004). During the audit of the appellants' records pertaining to 2007-08, it was observed that the appellants had taken Cenvat credit on input services used in the manufacture of the final product. The credit was taken on the date of issue of invoices or prior to the date of issue of the invoices (Catering Service), but payment for these services was made at a later date. The appellants have made payment/cleared the bills about 15 days after the date of issuing of invoices or the credit taken in re....
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....d. Aggrieved from the order of Commissioner (Appeals) dt. 21.03.2013, the appellants have filed Appeal No. E/57006/2013 before this Tribunal. 3. Ld. Advocate for the appellants submits that they had availed the credit but did not utilize the same. He argued that the only requirement of law to avoid the cascading effect was that the final product should have been cleared on the payment of duty and in their case, final product was cleared on the payment of duty. He submits that no investigation whatsoever has been conducted and in the show cause notice dt. 14.05.2009, the elements of extended period were absent. He further contended that the issue is covered by the judgments of Hon'ble Punjab & Haryana High Court in the cases of CCE, Ludhian....
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.... - AIR 1950 Madras 680 and AIR 1963 Bombay 236). He further argued that the decision of the jurisdictional High Courts should be followed in their case. 4. Ld. A.R. reiterated the findings in the impugned orders and submitted that in the case of M/s Jagatjit Industries (supra) relied upon by the appellants, the party reversed the credit before utilization and hence the Hon'ble High Court had held that no interest was liable. He contended that in the instant case, no reversal was made by the appellants. He also pointed out that the judgment of Hon'ble High Court in the case of Maruti Udyog Ltd (supra) relied upon by the appellants was prior to the decision of Hon'ble Apex Court in the case of UOI vs. M/s Ind-Swift Laboratories Ltd (supra)- ....
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....vice before making payment of the same. In the impugned orders, the adjudicating authority/first appellate authority have held that the appellants have contravened the provisions of Rule 4(7) of Cenvat Credit Rules, 2004. Accordingly, demands have been confirmed along with interest and penalties have been imposed. In order to appreciate the issue, Rule 4(7) ibid is reproduced below:- "Rule 4(7) - The Cenvat Credit in respect of input service shall be allowed on or after the day which payment is made of the value of input service and the service tax paid or payable as is indicated in invoice, bill or as the case may be, challan referred to in Rule 9." 6.1 On going through the provision of Rule 4(7) of the Cenvat Credit Rules, 2004, we fin....