TaxTMI 
TaxTMI 
2018 (12) TMI 428
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....rrow compass in which the dispute has come up to this Tribunal stage is that appellant company was found to have been availing cenvat credit of duty paid on inputs/ capital goods and service tax paid on input services. Though it is manufacturing exempted goods i.e. part of bicycle valve, a component used in the manufacture of automotive tyre tube valves, it was not maintaining separate accounts for dutiable and exempted goods as well exempted services against which audit pointed out payment of 6% duty on value of exempted goods and exempted services while appellant paid proportionately i.e. 1.13% of the credit availed in respect of common inputs. Despite payment of proportionate duty along with interest belatedly, it was put to show-cause n....
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....requirement and failure to intimate the department to avail second option of reversing the proportionate credit is condonable and would not take away substantial right of the appellant. Further in submitting a table containing the period vis-a-vis percentage of dutiable goods and exempted goods, he noted in his additional submissions, that out of the total credit of `67.06 lakhs in respect of common input services exempted goods cleared constitute only 1.13% against which duty demand @ 6% amounting to 16,65,169/- equivalent to 25% of the credit availed is absurd, irrational and inappropriate for which he prays for setting aside the order of the Commissioner (Appeals). 4. In response to such submissions, ld. AR for the department justifie....
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....e facts are also confirmed by the auditors in Audit Report. As regards common input services used for manufacturing of dutiable and exempted goods the assessee have claimed that they have reversed Service Tax Credit used in relation to manufacture of the exempted goods. (Underlined to emphasised) 6. Therefore there is force in the submission of ld. Counsel for the appellant that it had not availed credit of duty paid on common inputs and the dispute is therefore restricted to availment of cenvat credit on common input service. Further, the respondent department has not disputed the figures of proportionate payment but order-in-original reveals that in not giving such intimation/option, the assessee has suppressed the material fact that t....
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.... amount have not already been paid by the assessee at the spot, demand notices are issued by the department for their recoveries. EA 2000 audit was therefore held to be participative audit. Likewise CERA audit is conducted by the Comptroller and Auditor General of India in respect of receipt and expenditure of the Government of India. It also discharges revenue audit which covers central excise, service tax and customs laws during which time the assesses were examined by CERA audit party to point out the deficiencies, leakage of revenue and non recoveries of dues by the Central Excise Department. Therefore, it cannot be said that only because audit party had found non-maintenance of separate records appellant is to be tasked for suppression....