2020 (1) TMI 4

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....this Bench vide Final Order No. A/31495/2018, dated 04.12.2018 in appeal No. E/30502/2018 has already decided the matter in their favour. 2. The appellant is engaged in manufacture of steel doors and also trades in parts of the steel doors. They also provide the service of installation steel doors to their clients. The dispute in question is with respect to the CENVAT credit on common input services such as renting of immovable property, internet services etc. on which the appellant availed CENVAT Credit. It is the case of the Revenue that the appellant, having availed CENVAT Credit on the common input services which are used for manufacture of excisable goods viz; doors, provision of taxable services viz; installation of doors as well a....

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....to follow the CENVAT Credit Rules and there is no scope to stretch or modify their meaning. As the appellant was not covered by Rule 6(2), they should have reversed the amount as per Rule 6(3) read with Rule 6(3A) of CENVAT Credit Rules, 2004. 4. I have considered the arguments on both sides and perused the records. The issue to be decided is whether in terms of Rule 6 of CCR 2004 as applicable during the relevant period, the appellant could take proportionate amount of CENVAT Credit on the common input services, utilising relative turnover of the dutiable goods and taxable services to the total turnover and whether it can be considered as compliance in terms of Rule 6(2) of CCR 2004. I find that this issue was earlier discussed by this ....

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....use in the manufacture of exempted goods or services and take CENVAT credit only on that quantity of input or input service which is intended for use in the manufacture of dutiable goods or in providing output service on which service tax is payable." 7. It is seen from the above reproduced provisions that the intention of the Legislature was that a manufacturer or a service provider should not avail the entire CENVAT credit of the service tax paid on common input services and should avail proportionate credit attributable to the taxable output service for which the CENVAT credit Rules provides for maintaining separate accounts. In my view, appellant herein has followed this rule by taking the credit of only an amount which is attr....

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....; ST/1721/2011; ST/1700-3466/2012; & ST/21676/2014 12 notices. Understandably, the appellants are a big entity spread over different countries and different places in India as there is no prescribed manner for maintenance of records under CENVAT Credit Rules, the records maintained by the appellants have to be accepted as records for the purpose of observing the conditions of CENVAT Credit Rules. Moreover, we find that the Chartered Accountant has given a categorical certificate that the appellants are maintaining separate records and have been making reversals of the balance amounts at the end of every month." In the case of Sify Technologies Limited, the issue is more specific and in para No. 8, 9 & 10, the Bench held as under: ....

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.... Revenue that the appellant's case falls under Rule 6 (3) of CCR 2004. It is also apparent from record that the order passed by the Authority below is unreasonable for the reason that as against credit of Rs. 6,66,423/- allocated to the department in Table-B which provided exempted service, disallowance of entire credit of Rs. 1,11,07,075/- allocated to Departments in Table-A providing taxable service is contrary to the principal of proportionality. Therefore, entire disallowance does not call for any decision in favour of Revenue. 10. As an abundant caution, to make sure that the mathematical exercise is properly made by the appellant for allocation of credit rationally, the matter is remitted to the Adjudicating Authority to ....