2019 (5) TMI 514

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.... of Gherkins and processed vegetables falling under CEST 20011000 and 20019000 respectively by Central Excise Tariff Act, 1985 and are availing CENVAT credit on input and input services. During the course of audit on the records of the appellant, it was observed that the appellant obtained ISDN registration to distribute common input service. The appellant have two manufacturing units i.e., one 100% EOU and DTA unit at Tumkur. On verification of the ISD invoices, it is noticed that the whole of service tax credit has been availed in the EOU unit only. Whereas, the appellant needs to distribute CENVAT credit availed on inputs services on prorate based on turnover as prescribed under Rule 7(b) of the CENVAT Credit Rules, 2004. Therefore, CENV....

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....process, the original authority confirmed the demand of inadmissible credit of Rs. 1,95,275/-, Rs. 18,540/- and Rs. 1,64,562/- under the provisions of Rule 14(1)(ii) of CENVAT Credit Rules, 2004 read with Section 11A(4) of Central Excise Act, 1944 and appropriated the said amount and also imposed penalties. Aggrieved by the Order-in-Original, appellant filed appeal before the Commissioner (A), who rejected the same. 3. Heard both the parties and perused the records. 4. Learned consultant appearing for the appellant submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the definition of input service as contained in Rule 2(l) of CENVAT Credit Rules, 2004. He further submit....

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....rvice' even after amendment from 1.4.2011. The learned consultant also submitted that with regard to ETP plant, in the appellant's own case, this Tribunal vide its Final Order No.20153 - 20154/2019 dated 12.2.2019 has allowed the refund on setting up of ETP plant on the ground that setting up of ETP is a statutory requirement for carrying out the manufacturing activity and therefore, the ETP is an integral part of the manufacturing set up and is covered under the scope of 'input service' as defined in CENVAT Credit Rules, 2004. In support of his submission, he relied upon the following decisions: (i) CCE vs. Adecco Flexione Workforce Solutions Ltd.: 2012 (26) STR 3 (Kar.) (ii) Sarita Steel & Industries Ltd. vs. CCE: 2011 (....