Loading...

2019-VIL-350-CESTAT-CHD-CE

CENTRAL EXCISE CESTAT Cases

Central Excise - Revenue case that in terms of Rule 6(5) of CCR, 2004, the appellant is restricted to avail upto 20% of the Cenvat credit whereas the appellant utilized more than 20% of the credit, therefore, the appellant has availed excess credit and the same is required to be recoverable from the appellant - credit on inputs services of guest house and staff welfare expenses – HELD - during the impugned period, the appellant was providing taxable services and well exempted services but there is restriction for utilization of credit upto 20% lying in their Cenvat credit account. Admittedly, the appellant has availed the credit more than 20% during the impugned period. With effect from 1.4.2008, the appellant became entitled to avail credit lying in their Cenvat credit account, in that circumstance the appellant is entitled to avail Cenvat credit - the appellant is liable to pay interest for the intervening period i.e. the date of excess utilization of credit till 1.4.2008 - the impugned order restricting 20% of utilization of credit and recovery thereof is set aside – the appellant is directed to pay interest for the intervening period - With regard to the denial of credit on inputs services namely, guest house and staff welfare expenses, the said services have been availed by the appellant for providing output services and the same have been availed in the course of their business of providing output services - the appellant is entitled is entitled to avail credit on guest house and staff welfare expenses. Therefore, the credit cannot be denied to the appellant – assessee appeal is allowed

Create Account



Log In



Forgot Password


Please Note: This facility is only for Subscribing Members.

Email this page