2020 (2) TMI 228

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....ent case are that the assessee is manufacturer of tungsten and molybdenum wire and during the audit for the period 02/15 to 06/17, it was observed that they have availed irregular credit of BCD to the tune of Rs. 2,33,683/- which was irregular. On being pointed out the assessee reversed the same during November 2017 and the interest of Rs. 38,396/- was paid on 29.11.2017 under protest. Further, the assessee had also availed credit of Service Tax to the tune of Rs. 2,49,810/- on services viz. outdoor catering, health insurance for employees and vehicle insurance which cannot be classified as input services under Rule 2(1) of the CCR. Notice dated 16.02.2018 issued demanding the reversal of the same along with interest and penalty. After cons....

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....ity indirectly in relation to production. He also submitted that the Commissioner (A) in the impugned order has rejected the CENVAT credit on Outdoor Catering Services, Health Insurance Services and Health Insurance Charges which was originally allowed by the Original Authority and the appellant was not in appeal against those input services. 5. On the other hand, learned AR defended the impugned order. 6. After considering the submissions of both the parties and perusal of the material on record, I find that the appellant has produced before me the ER-1 Returns for the month of January and the credit available in that Return is Rs. 2,60,962/- whereas the Commissioner has only taken the closing balance of Excise and has ignored the cr....