TaxTMI 
TaxTMI 
2018 (7) TMI 1950
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....ot suitable for use in klin are being sold as such. The Department directed them to reverse the proportional credit taken on GTA Service for the aforesaid inputs under Rule 3 (5) of the Cenvat Credit Rules, 2004. It is also the case of the appellants that the said rule is applicable to inputs only for capital goods and not to input service. In support of their submissions, they relied upon the following decisions:- (i) Chitrakoot Steel & Power Pvt. Ltd. Vs. CCE, Chennai reported in 2008 (10) S.T.R. 118 (Tri-Chen.). (ii) CCE, Chandigarh-I Vs. Punjab Steels reported in 2011 (21) S.T.R. 5 (P & H). (iii) Seven Star Steels Ltd. Vs. CCE & ST, BBSR-II reported in 2013 (30) S.T.R. 532 (Tri.-Kolkata) (iv) Real Isp....
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....service tax credit is in respect of or related to such inputs?" 4. Briefly, the facts, as have been mentioned in the memo of appeal, are that the respondent-assessee is engaged in the manufacture of non-alloy steel ingots. It is registered under the Central Excise Act as well as for payment of service tax. Apparently finding that the assessee contravened the provisions of Rule 3(5) of the Cenvat Credit Rules, 2004 (for short, 'the Rules') while not reversing the input credit on service tax paid on transportation of goods by road, the adjudicating authority vide order dated 13-10-2006 raised a demand of ` 2,75,684/-, besides imposing equal amount of penalty. The order was confirmed in appeal by the Commissioner (Appeals), Customs & ....
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....and Rule 5 of the Rules. Rule 3(5) only talks about reversal of cenvat credit on inputs or capital goods, whereas Rule 5 talks about cenvat credit on input or input service. He further referred to Rule 2(k) and (l) of the Rules to show that 'input' and 'input service' have been separately defined under the Rules, where the 'input' means certain materials, whereas the input service' means the services availed of. The submission is that once there is no provision in the Rules for reversal of the credit taken on account of input service merely on analogy, the revenue cannot direct the assessee to reverse the credit. 7. Heard learned counsel for the parties and perused the paper book. 8. The Tribunal reversed the orders passed....
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.... 9. It has been specifically mentioned in the memo of appeal by the Revenue that no appeal was preferred by it against the judgment relied upon by the Tribunal. 10. Be that as it may, however, still even on merits, this court finds that the view as expressed by the Tribunal is strictly in conformity with the Rules. Rule 2(k) of the Rules defines 'input', whereas Rule 2(l) defines 'input service', meaning thereby both the terms have been defined independently. Rule 3 defines the term 'Cenvat credit', which includes duty paid under various enactments and also the service tax leviable under Section 66 of the Finance Act, 1994. Rule 3(5) of the Rules only talks about the Cenvat credit taken on inputs or capital goods. It does not....