2022 (11) TMI 861

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.... involved common issues, are taken up together for disposal. Appeal No. OIO No. Period Demand (Rs.) E/11107/2017 VAD-EXCUS-002-COM-047-16-17 dtd. 31.01.2017 April 2011 to May 2015 14,25,43,790/- E/11702/2018 VAD-EXCUS-001-COM-33-17-18 dtd. 15.03.2018 June 2015 to March 2016 3,09,89,384/- E/11764/2019 VAD-EXCUS-001-COM-44-18-19 dtd. 30.03.2019 April 2016 to March 2017 3,73,06,244 2. Briefly stated the facts of the case are that appellant are engaged in manufacturing and trading activity. During the relevant period, they have availed Cenvat Credit on the Input and input services. Alleging that the appellant also engaged in the activity of trading of goods and common input services have been u....

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....Commissioner 2000 (120) ELT 792 (Tri. LB) (iv) Punj Lloyd Ltd. vs. ST. Rohtak 2015(40)STR 1028 (Tri. Del) (v) Mafatlal Industries Ltd. Vs. Commissioner of Central Excise & ST. - 2020 (43) G.S.T.L. 562 (Tri. - Ahmd.) (vi) Tiara Advertising vs. Union of India -2019(10) TMI 27 (vii) Nava Bharat Ventures Ltd. vs. CCE Hyderabad - 2021(11)TMI 426 (viii) Spraying Systems India Ltd. vs. CCE- 2022-TIOL-17 -CESTAT- BANG. 4. He submits that as per the impugned orders, the Appellant cannot opt for reversal of proportionate Cenvat Credit availed on common input services in terms of Rule 6(3)(iii) of Cenvat Credit Rules 2004. However Rule 6 of Cenvat Credit Rules 2004 provides three options for reversal of Cenvat Cr....

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.... service, this is not under dispute. Therefore in our view, the appellant have complied with the condition prescribed under Rule 6(3)(ii) read with sub-rule (3A) of Rule 6 of Cenvat Credit Rules, 2004 therefore demand of huge amount on the total value of the trading activity @ 5% / 6%/ 7% cannot be demanded. We are also of the view that Rule 6 of the Cenvat Credit Rules is not enacted to extract illegal amount from the assessee. The main objective of the Rule 6 is to ensure that the assessee should not avail the Cenvat Credit in respect of input or input services which are used in or in relation to the manufacture of the exempted goods or for exempted services. If this is the objective then at the most amount which is to be recovered shall ....