2025 (12) TMI 452

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....VAT Credit amounting to Rs.1,77,70,613/- on various capital goods and input services. Show Cause Notices were issued alleging that the Credit involved in the input services received for use in or in relation to the final Products, cannot be utilized by the appellant for dis-charging its Service Tax liability on account of the output service rendered by it, inasmuch as the input services for which the Appellant had no nexus or integral connection with the output service rendered by the appellant. 3. The Adjudicating Authority dis-allowed the CENVAT Credit taken and confirmed the demand of Service Tax amounting to Rs.1,77,70,613/- along with appropriate interest and imposed penalty of equal amount under Section 78 of the Finance Act, 1994 ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d. Authorized Representative of the Revenue justifies the impugned order. 7. Heard both sides, perused the appeal papers and the submissions made by both the sides. 8. We find that this Bench of the Tribunal, in appeal No. E/79056/2018 vide Final Order No. FO/76992/2019 dt.13/12/2019 had decided in favour of the appellant-assessee. The relevant paragraphs are reproduced below:- 6. After hearing both sides and on perusal of record, it appears that the identical issue has come up before the Hon'ble High Court of Bombay in the case CCEx., Pune Vs. S. S. Engineers : 2016 (42) STR 3 (Bom.), where it was observed as under : "3. Ordinarily an interpretation of a rule and in the light of a substantive legislation on Central ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....2010. It is on the subject of cross-utilization of credit on inputs and input service. The Tribunal, therefore, has rightly come to the conclusion that there are certain restrictions on the utilization of particular type of duty and for that purpose it has relied on Rule 7 of Cenvat Credit Rules. A reference to that also does not vitiate the impugned order inasmuch as Rule 7 states that input service distributor may distribute the Cenvat credit in respect of the service tax paid on the input service to its manufacturing units or units providing output service, subject to the conditions stipulated therein. In such circumstances, the cross utilization of credit on goods and services being not covered by any restrictive provision, leave alone ....