TaxTMI 
TaxTMI 
2019 (6) TMI 1327
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....led common input services used for trading activities and for provision of taxable service. Availment of cenvat credit was disputed by the department on the ground that prior to 01.04.2011, trading was not considered as an exempted service and therefore, taking of cenvat credit was not permissible as per Rule 3 of the Cenvat Credit Rules, 2004. The show cause notice dated 23.10.2013 issued by the department was adjudicated vide the impugned order dated 30.5.2014, wherein the learned Commissioner of Central Excise & Service Tax, Pune has confirmed the proposed demand of Cenvat amount of Rs. 98,61,213/- along with interest and also imposed equal amount of penalty on the appellant. Certain amount deposited by the appellant prior to adjudicatio....
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.... appended to Rule 2(e) ibid is clarificatory and should be applicable retrospectively. He further submitted that the show cause proceedings initiated by the department are barred by limitation of time inasmuch as there is no element of suppression, misstatement etc., and thus, the adjudged demand cannot be confirmed on the appellant. In this context, the Learned Consultant has relied upon the decisions of this Tribunal in the case of CI Automotors Pvt. Ltd. 2015 (6) TMI 788 (Tri-Del.), TFL Quinn India Pvt. Ltd. 2016-TIOL-856-CESTAT-HYD, Krishna Auto Sales 2015 (40) S.T.R. 1121 (Tri.-Delhi), Franke Faber India Ltd.-2017 (52) S.T.R. 155, Kundan Cards Pvt. Ltd.-2016 (43) S.T.R. 630, Crown Worldwide Movers Pvt. Ltd.-2016 (44) S.T.R. 667 (Tri.-M....
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....es. Rule 3 ibid entitles a provider of taxable service to take Cenvat credit of duties and taxes paid on the inputs, input services and capital goods. However, an embargo has been created in Rule 6 ibid, which is to the effect that the Cenvat credit shall not be allowed on the input or input services used for providing the exempted services. The said Rule mandates that in case of availment of common input or input services for providing both the taxable and exempted service, the service provider should maintain separate records in respect of uses of input/input services in respect of both the category of services and in absence of non-maintenance of records, to follow the procedures laid down in the sub-rules itemized in Rule 6 ibid. On per....
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....included therein, the effective date was provided as 01.04.2011 and in some of the other clauses; the date of effect was considered as 01.03.2011 itself i.e. the date of issue of the notification. It has no where been stated in the notification that the said amendment was either clarificatory or declaratory and should be given effect to retrospectively. The law is well settled that an amendment can be considered to be declaratory and clarificatory, only if, the statute itself expressly and unequivocally states so; on the contrary, if there is no such clear statement in the statute itself, the amendment shall not be considered to be merely declaratory or clarificatory and cannot operate with retrospective effect. Therefore, we are of the con....
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....on seeks to give an artificial meaning and brings about a change, effectively in the existing law and in addition, is stated to come into force with effect from a future date, there is no principle of interpretation, which would justify reading the explanation as operating retrospectively. 5.5 It is evident from the amending provisions of Cenvat statute w.e.f. 01.03.2011 that a substantive law was enacted to consider the activities of trading as an exempted service. Now the issue remains for resolution, as to whether, such amendment in the statutory provisions is to be construed as retrospective in effect or prospective, in order to be given effect to. In this context, the law is amply clear that if a substantive law is introduced, the dat....
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....appeal filed by the appellant. 6. In this case, the department had issued the show cause notice on 23.10.2013, seeking for recovery of the irregularly availed Cenvat credit by the appellant during the period 2008-09 to 2010-11. The provisions of Rule 14 ibid read with the proviso to Section 73(1) of Chapter V of the Finance Act, 1994 were invoked for effecting recovery of the alleged demands. Section 73(1) ibid provides the manner of recovery of service tax not levied or paid or short levied or short paid. As per the statutory mandates, in such an eventuality, the show cause notice was required to be issued within one year from the relevant date. However, in the proviso clause appended to Section 73(1) ibid, it has been mandated that where....