TaxTMI 
TaxTMI 
2025 (8) TMI 1829
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....redit availed by the Appellant. 3. The brief facts are the Appellant is engaged in manufacture of Ayurvedic medicines. Alleging that the Appellant had availed CENVAT credit on input services and utilized the cenvat credit for payment of duty on the final products, proceedings were initiated and Show Cause Notice No. 57/2015 dated 06.08.2015 was issued by invoking the extended period of limitation for the period from July 2010 to September 2014. Further, a Statement of Demand (SOD) dated 30.10.2015 was issued for the period from October 2014 to March 2015. As per the allegation in the show cause notices (SCNs), demand was made @ 5%/6% of the value of exempted goods under Rule 6(3)(i) of CENVAT Credit Rules, 2004 for the period prior to 01.03.2011 and for the period after 01.03.2011, demand was made under Section 11A of the Central Excise Act, 1944 on the exempted goods by denying the partial exemption under Notification No. 1/2011-CE dated 01.03.2011, since the Appellant failed to comply with the condition of non-availment of cenvat credit. Thereafter Adjudication authority as per Order-inOriginal dated 30.01.2011 dropped both the demands since the proportionate credit and intere....
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....and removed during the financial year The total value of dutiable and exempted goods manufactured and removed, during the financial year Total CENVAT credit taken on common inputs during the financial year The amount of CENVAT credit attributable to inputs used in or in relation to manufacture of exempted goods (Rule 6(3A) (i) of Cenvat Credit Rules, 2004) 2010-11 233589484 274625348 166802 141878 2011-12 294373886 379631574 60626 47011 2012-13 300354561 398582743 153057 115337 2013-14 357013160 452734564 216017 170345 2014-15 384929736 492828998 754710 589475 TOTAL 1570260827 1998403227 1351212 1064046 The amount of Cenvat credit attributable to common inputs computed in terms of Rule (3A)(iii) of the Cenvat credit Rules, 2004 is as under; Year The total value of exempted goods manufactured and removed during the financial year (M) The total value of dutiable and exempted goods manufactured and removed, during the financial year (N) &nbs....
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....ly known as M/s. Wipro Ltd. Vs. Commr. of Central Excise Bangalore-II - 2025 (4) TMI 756; wherein it is held that; "9. We find that without specifying the mistake or omission on the part of the appellant, while assessing the proportionate Cenvat credit under Rule 6(3A), the same cannot be rejected. As regarding invoking the extended period of limitation, we find strong force in the submission made by the appellant. As regarding reversal of proportionate cenvat credit on common security services, it was required to be made only from April 2011, when Rule 6(5) of Cenvat Credit Rules was omitted vide Notification No. 3/2011-CE (NT) dated 01.03.2011 w.e.f. 01.04.2011. Fact being so, since the appellant had fully reversed the cenvat credit availed against common input services under 'Courier' services and 'Telephone' services and proportionately as per Rule 6(3A) for the 'Security Service', the impugned order is prima facie unsustainable and liable to be set aside. 10. The learned Authorised Representative (AR) for the Revenue reiterated the findings in the impugned order of the Commissioner. 11. Heard both sides and perused the records. 12. We ....
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.... the amount of reversal. Such amendment was also clarified by the Tax Research Unit (TRU), Circular dated February 29, 2016 to apply, retrospectively inasmuch as the clarification clearly mentions that the provisions of Rule 6 providing for reversal of credit in respect of input services used in exempted services, is being redrafted with the objective to simplify and rationalize 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. In the present case, though the appellant is claiming that they have reversed proportionate credit of Rs. 34,74,918/- under Rule 6(3) of Cenvat Credit Rules, 2004 with interest, the method adopted by the appellant is not available on record. Further, as submitted by the appellant, the amount assessed by the adjudication authority is also not brought to the notice of the appellant either in the show-cause notice or at any time before issuing the impugned order. As....