TaxTMI 
TaxTMI 
2024 (12) TMI 529
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....tter. 3. The proceedings initially emanated out of a show cause notice No. III(03) 725/ SCN- Theme/ Aalankar/ Tech/Audit/Pat/2018 dated 24.08.2018 issued by the Commissioner, Audit, Central Tax Audit Commissionerate, Patna. 4. The Respondent is engaged in providing taxable service of 'repair, re-conditioning, restoration or decoration or any other similar services of any motor vehicle and business auxiliary service'. As an authorized dealer of Maruti Suzuki Ltd. and Honda Scooters Ltd. During the course of the audit, upon verification of balance sheet for the year 2012-13 and 2016-17 certain income earned on trading activity from sale of automobile vehicles along with spare parts etc. were noted. During the course of scrutiny of the Cenva....
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.... failure to keep separate records, the benefit as extended by the Ld.Commissioner could not be handed out to the respondents and therefore the contention of the department was that the order of the Ld.Commissioner dropping of the demand as well as for refraining from imposing penalty, upon the noticee was not legal and proper, since they had not followed the mandatory conditions/procedures laid down under Rule 6 of the Cenvat Credit Rules, 2004. He also submits that the respondent had not furnished the declaration as statutorily required under Rule 6(3A)(a) of the said Rules. 7. We have perused the facts of the case and the available evidence on record and heard the contentions raised by both the parties. 8. It is an undisputed fact on re....
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....6.1. In our view w.e.f. 1-3-2008 Rule 6(3) had been amended to give an additional option to a manufacturer manufacturing dutiable as well as exempting final product by using common Cenvat credit availed input/input services and this additional option was to reverse the proportionate Cenvat credit attributable to input/input services used in or in relation to manufacture of exempted final product. The proportionate amount of Cenvat credit attributable to the input/input services used in or in relation to manufacture of exempted final product was to be calculated as per the formula prescribed in Rule 6(3A). By Finance Act, 2010, the above provisions were made retrospectively applicable. Hon'ble Gujarat High Court in case of Sh. Rama Multitech....
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.... for calculation of reversal of CENVAT credit they were held liable to pay duty under the first option as prescribed. Hence demand for duty, interest and penalty was confirmed by the Commissioner. The appellant contended that according to Rule 6(3)(a) of the CCR, there were two options for dutiable and exempted goods/ services. In the given case, second option of proportionate reversal under Rule 6(3)(a)(ii) was exercised as it resulted in lower payment of duty of Rs.3,70,612/- as compared to first option under Rule 6(3)(i) which required payment of duty of Rs.24,55,364/. So the assessee reversed credit as per the second option amounting to Rs.3,70,612/-. The Tribunal taking reference of Rule 6(3A) observed that the Rule does not mention th....
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....'s Engineering Co. Ltd. vs. CCE, Mumbai-II [2017 (49) S.T.R. 370 (Tri.-Mumbai)], the Tribunal held as unsustainable the confirmation of demand to pay an amount of 5%/10% of the value of exempted goods when the appellant reversed not only the credit taken on input services used in the manufacture of exempted goods but also the credit taken on input services used in the manufacture of dutiable goods along with interest thereon. 14. The apex court, in the case of Chandrapur Magnets Wires (P) Ltd. vs. CCE, Nagpur [1996 (81) E.L.T. 3 (SC)], had held that the reversal of credit availed on common inputs, though post clearance would absolve the assessee of liability to pay 10% of their price - by virtue of such reversal of credit and paying intere....