2020 (7) TMI 555

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....ill November 2008 when they started manufacture and clearance of package software. They have utilized credit to the extent of Rs. 1,59,77,335/- in terms of Rule 3(4) CCR, 2004 for payment of duty on the excisable goods cleared by them. Revenue objected to the utilization of credit availed on input service for clearance of excisable goods and issued a SCN dated 05.09.2011. Learned Commissioner confirmed the demand along with equal penalty under Section 11AC of CEA, 1944. Hence, this appeal. 2. Learned Senior Counsel, Sh. Ravishankar, appearing for the appellants submits that Revenue has erred in appreciating the provisions of Rules 2&3 of CCR, 2004 which provided for intersectoral CENVAT credit on goods and services; the amendment brought....

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....llants were regularly filing the Returns giving the details of CENVAT credit availed and utilized sector-wise and therefore, SCN issued on 05.09.2011 covering a period March 2009 to August 2009 is time barred; Commissioner's finding in the OIO that the services on which credit was availed cannot be considered as input services for manufacturing of excisable goods, is beyond the scope of the SCN. 4. Learned Authorized Representative for the Department reiterated the findings of the OIO and relies upon Transafe Services Ltd Vs CCE, Haldia 2017(3) GSTL 445 (Tri-Kol) 5. Heard both sides and perused the records of the case. As submitted by the learned Senior Counsel, the Finance Minister in his Budget Speech stated as follows: 148....

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....general principles that in respect of utilisation of credit there is no one to one correlation and cross utilisation of Credit is permissible clarification from 10.9.2004. CBEC vide Letter F. No. 381/23/2010/862 dated 30.03.2010, clarified that CENVAT credit on inputs, capital goods and input services which are used for manufacture of goods or for provision of services is available in a common pool and can be used for payment of Excise duty and/or Service Tax. Credit accumulated by the service provider or manufacturer on the input services availed as well as inputs is available for payment of excise duty or Service Tax. Any contra view taken would defeat the very scheme of credit. It has been held in numbers of cases that as far as the inpu....