TaxTMI 
TaxTMI 
2025 (12) TMI 4
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....vely under section 11A of Central Excise Act, 1944, along with applicable interest thereon, besides imposition of penalty under rule 15 of CENVAT Credit Rules, 2004 and penalty under section 11AC of Central Excise Act, 1944, that, in order of the original authority, was restricted, insofar as the latter is concerned, to Rs. 9,40,153 even as the rest of the demand was dropped. 2. The appellant, a manufacturer of 'pressure cookers', had, during the period in dispute, also dealt with 'idli stand' which, for the period up to February 2011, was exempted from duty of central excise and, for the period thereafter, eligible to be cleared on payment of duty of 1%/2% subject to non-availment of credit on 'inputs' and 'input service' owing to which....
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....pellant which was sought to be evidenced by non-recourse to rule 4(5)(a) of CENVAT Credit Rules, 2004. 4. Learned Counsel submitted that appellant could not be compelled to restrict exercise of the options for reversal determined by central excise authorities and that, upon acknowledgement of their right to exercise option, the adjudicating authority should have limited the liability. He submitted that upholding of the detriment determined by the original authority in order of Commissioner of Central Excise (Appeals), Mumbai Zone - III is cause of cavil. 5. Reliance was placed on the decision of the Hon'ble Supreme Court in Commissioner of Central Excise & Customs v. Precot Meridian Ltd 2015 (325) ELT 234 (SC)] to contend that mod....
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....e that the contractual arrangement with the principal manufacturer includes assumption of responsibility by the latter for discharge of duty liability on goods produced by the former. In circumstances of non-leviability of duties of central excise on the product, 'job worker' is superfluous and the default provisions render actual producer to be the manufacturer. Accordingly, it cannot be said that the exempted goods cleared by the 'contractor' to the appellant was liable to excise duty and could be deemed as 'input' procured for clearance of exempted goods in terms of rule 2 of CENVAT Credit Rules, 2004. For the period up to February 2011 'idli stand' not 'exempted goods' cleared by 'contractor' and, consequently, the appellant was not sub....
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....4/86C.E., dated 25-3-1986. If the activity amounted to manufacture - which has not been disputed by the Revenue at all in the past - it cannot also simultaneously become a service. If the processes undertaken by the appellant on job work did not amount to manufacture and was only a service, Revenue should have said so while assessing its central excise returns. Revenue should have informed that the appellant that it was not liable to pay any central excise duty at all and there was no need to claim the benefit of exemption Notification No. 214/86-C.E., dated 25-3-1986. Having accepted the excise returns claiming the process to be manufacture and knowing that the appellant was claiming the exemption notification from Excise duty, Revenue can....
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....6(2) provides that if inputs or input services are used for provision of output services which are chargeable to duty or tax as well as exempted services, then separate accounts are to be maintained for receipt, consumption and inventory of inputs and receipt and use of input services and the provider shall take credit only on inputs used for dutiable output services. Rule 6(3) of the Cenvat Credit Rules, 2004 is relevant for the purpose of this case and states to the effect that a provider of output services who opts not to maintain separate accounts, as required under Rule 6(2), should follow any one of the options provided under Clauses (i) to (iii) thereunder, as applicable to him. Clause (i) provides for the option of paying an amount ....
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....vider who does not maintain separate accounts in relation to receipt, consumption and inventory of inputs/input services used for provision of output services which are chargeable to duty/tax as well as exempted services. If such options are not exercised by the service provider, the provision does not contemplate that the Service Tax authorities can choose one of the options on behalf of the service provider. As rightly pointed out by Sri S. Ravi, Learned Senior Counsel, if the petitioner did not abide by the provisions of Rule 6(3) of the Cenvat Credit Rules, 2004, it was open to the authorities to reject its claim as regards the disputed Cenvat Credit of Rs. 17,15,489/-. 15. We may also note that in the event the petitioner was ....