TaxTMI 
TaxTMI 
2025 (12) TMI 714
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....mmon input" was introduced in the said rule (6). DGGI investigated the case and issued a show cause notice dated 28.09.2020; the proposal in the show cause notice were confirmed by the Order-in-original dated 16.01.2023 vide which demand of Rs. 18,95,15,237 was confirmed along with interest and equal penalty under Sec 78 of the Finance Act, 1994. Hence the appeal. 2. Shri Bharat Raichandani and Shri Deepak Kumar, advocates for the appellants submit that the issue is no longer res integra having been decided in the case of Reliance Industries 2019- TIOL-1593CESTAT-Ahm. Wherein it was held that "if the whole rule 6(1)(2)(3) is read harmoniously and conjointly, it is clear that "total CENVAT Credit" for the purpose of formula under Rule 6(3A) is only total CENVAT Credit on common input service and will not include the CENVAT Credit on input or input service exclusively used for the manufacture of duty of goods. If the interpretation of the revenue is accepted, then the CENVAT Credit of part of input service even though used in the manufacture of dutiable goods, shall stands disallowed, which is not provided under any of the rule of CENVAT Credit Rules, 2004. He also submits that th....
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....of service is clearly brought out for the purpose of payment of tax; once the transaction of transfer of title in goods by way of sale is excluded from the definition of service, the same cannot be deemed to be a service for the purpose of section 66D of the Finance Act, 1994. 6. Learned Counsel submits that "Goods" is defined under clause (25) of Section 65B of the Act means every kind of movable property other than actionable claim and money and includes securities, growing crops grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale; in the common parlance, trading is buying and selling of goods; if goods are bought and sold then sales tax is levied which later becomes value added tax and now being dealt under GST; the taxable event of service tax is the act of providing service while act of sale alone is covered under taxable event of sales tax; therefore, to call trade as service is conceptually improper. He relies on * IG Petrochemicals 2018-TIOL-3528-CESTAT-MUM; * Medisray laboratories Private limited 2019 (369) ELT 717 (Tri. Mumbai); * Popular Caterers 2019 (27) GSTL 545....
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....d showing the taking of the credit; regular audit and investigations were being conducted; department is very much aware about the activities carried out by the appellant company. * the appellant made a categorical declaration in the returns that they have been reversing the proportionate credit as per Rule 6(3A). * whether the value of trading of goods has to be included in the value of exempted goods is an interpretational issue; there are various decisions to the effect that the trading of goods cannot be termed as exempted service; * the appellants are under bonafide belief that they are entitled to avail and utilize credit for the forging reasons. * the revenue department has not brought forth any cogent evidence on record to establish the charge of wilful suppression by the appellant to invoke extended period of limitation. * sappellants rely upon decision of the Hon'ble Supreme Court in the case of Continental Foundation V/s CCE 2007 (216) ELT 177 (SC). 8. Shri S.K. Meena, learned Authorized Representative for the Department submits that the appellants were providing taxable as well as exempted services; exempted services inclu....
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....t, if made without such deliberate intent, does not automatically constitute a wilful misstatement. "Suppression of facts" the most frequently litigated ground, implies a deliberate failure to disclose full and correct information with the specific intent to evade payment of duty; crucially, mere omission, negligence, or inadvertence, without this underlying intent, does not constitute suppression. Lastly, "contravention with intent to evade duty" is a broader category encompassing any violation of the Act or Rules, but it is the accompanying intent to evade duty that is paramount for the extended period to apply. 12. We further find that it was held that mens rea is central to all grounds for invoking the extended period; a consistent judicial and strict stance has been taken in interpretation of the mens rea to prevent the authorities from invoking extended period as a default for any non-declaration. It has been consistently held that to establish 'mens rea' the assessee must have actively concealed, misrepresented, or taken affirmative steps to hide facts, rather than just failing to declare something they might have genuinely overlooked or misunderstood. Hon'ble Supreme Cou....