2025 (6) TMI 1579

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....LR-EXCUS-003-COM-33-16-17 dated 27.03.2017 passed by the Commissioner of Central Excise, Bangalore. 2. Briefly the facts of the case are the appellant M/s. PNB Metlife India Insurance Company Ltd., had availed cenvat credit on various input services under Cenvat Credit Rules, 2004. On verification of the financial records of the appellant, it was noticed that cenvat credit was availed on common input services used in both taxable and non-taxable territory. As per the Cenvat Credit Rules, 2004 (CCR), the appellant had to follow the conditions prescribed under Rule 6 of Cenvat Credit Rules, 2004. Accordingly, based on the formula in terms of Rule 6(3A)(c)(iii), the Commissioner in the impugned order held that the appellant is liable to rev....

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....issioner of GST and C.Ex. 2023 (12) Centax 222 (Tri.-Mad.). 4. The Learned Authorised Representative for the Revenue reiterated findings of the learned Commissioner. 5. Heard both sides. The only issue to be decided is as per Rule 6(3A) of Cenvat Credit Rules, 2004, what would be the manner of computation of proportional reversal of credit when common input services are used for both taxable and exempted services. This issue is no longer res integra in as much as various co-ordinate Benches of the Tribunal have clearly held that the total cenvat credit to be taken for the above formula is only the total cenvat credit of common input services. The Principal Bench of CESTAT at New Delhi in the case of E-Connect Solutions (P) LTD. (supra....

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....ationalize the same without altering the established principles of reversal of such credit. It has been further clarified at paragraph (iv) of the Circular that the purpose of the rule is to deny credit of such part of the total credit taken, as is attributable to the exempted services and under no circumstances this part can be greater than the whole credit. 21. In this connection, reference can be made to the decision of the Tribunal in Reliance Industries, wherein while dealing with a similar issue, the Tribunal held that the term total Cenvat credit taken on input services in the pre-amended rule is only total Cenvat credit of common service and will not include the Cenvat credit on input/input services exclusively used for the manuf....