TaxTMI 
TaxTMI 
2019 (12) TMI 550
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....ture and clearance of excisable goods viz. De-Sulphurising compounds, viz. (a) calcium carbide based Cad-9 and (b) Magnesium based, Mag-97 and they are availing the facility of CENVAT credit under the provisions of CENVAT Credit Rules, 2004(CCR). During the course of audit on the records of the appellant, it was noticed that the appellant has not paid service tax correctly and also did not reverse an amount of 6% of the value of exempted goods cleared. Therefore, a show-cause notice dt. 07/02/2017 was issued demanding an amount of 6% of sale value of empty drums cleared during 01/03/2015 to 31/07/2016 and wrongly availed CENVAT credit of Rs. 15,506/- and demand of service tax of Rs. 57,077/- along with interest and imposition of various pen....
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....emanded by the Revenue, the learned counsel submitted that the appellate authority has not properly construed the law and contention of the appellant on the said issue and has merely reiterated the findings of the adjudicating authority without proper appreciation of facts and the application of mind. He further submitted that w.e.f. 01/03/2015, Rule 2(d)- Exempted goods or Rule 2(h) - Final products were not amended to include non-excisable goods. Further Rule 6(1) was amended w.e.f. 01/03/2015 vide Notification No.6/2015-CE(NT) inserting, inter alia, Explanation which reads as :- Explanation 1 - For the purposes of this rule, exempted goods or final products as defined in clauses (d) and (h) of Rule 2 shall include non-excisable ....
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....nput service as is used in or in relation to the manufacture of exempted goods and their clearance upto the place of removal or for provision of exempted services and the credit not allowed shall be calculated and paid by the manufacturer or the provider of output service, in terms of the provisions of sub-rule (2) or sub-rule (3), as the case may be. 3.2. The learned counsel further argued that Rule 6(1) would apply only when inputs or input services are used 'in relation to the manufacture of exempted goods. Therefore, even the non-excisable goods as per the Explanation, should have arisen out of manufacturing activity to fall under Rule 6(1). He also submitted that assuming without admitting that the MS drums are covered by the Explan....
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....issue No.2 regarding the allegation of availment of CENVAT credit of Rs. 15,505/-, the learned counsel submitted that the same was reversed before the issuance of show-cause notice and the appellant had credit balance more than the said amount and hence interest is not liable to be paid. He further submitted that even the penalty of Rs. 2,326/- paid by them was not liable to be paid. 3.6. Regarding the issue no.3 with regard to irregular availment of cenvat credit on GTA, the learned counsel submitted that the appellant paid the entire amount of service tax along with interest and has also paid 50% of the amount of tax and penalty. He further submitted that the Department did not bring any evidence that there was suppression of facts. Th....