The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) granted relief to Intas Pharmaceuticals by directing re-adjudication against the reversal of CENVAT credit of Excise duty on the ground of non-examination of the actual date of the service receipt. Intas Pharmaceuticals Limited, the appellant assessee engaged in the manufacture of dutiable as well as exempted medicaments and availing CENVAT credit, and hence they had opted for following the scheme envisaged under Rule 6 (3A) of the CENVAT credit rules (CCR), 2004. In the financial year 2011-12, the assessee reversed the CENVAT credit monthly proportionately under Rule 6(3A) of CCR at the end of the financial year 2011-12.
The assessee appealed against the order passed by the Commissioner (Appeals) for confirming Rs. 51,74,729/- as CENVAT credit short-paid/reversed, since the amount of Rs. 1,58,66,384/- was not included by the assessee at the time of quantification of the amount to be reversed and for confirming the levy of interest and imposed a penalty of Rs. 13, 00,000/- under Rule 15 of the CENVAT Credit Rules. Hardik Modh, the counsel for the assessee contended that it was evident from the Excel sheet placed in the appeal papers that all the services received by the assessee before 01.04.2011 and all the invoices are dated before 01.04.2011.
Thus, it stands proved that the services were received before 01.04.2011 when Rule 6 (5) of the CCR was in existence. P. Ganesan, the counsel for the department relied on the decisions made by the lower authorities and contended that the assessee was wrongly availed the CENVAT credit and the reversal raised by the revenue was as per the law and liable to be sustained. The Bench observed that only for the reason that the credit was availed after 01.04.2011 when Rule 6(5)of CCR was omitted, the assessee is not eligible for CENVAT credit on services as prescribed in the Rule. Even though Rule 6 (5) was omitted from 01.04.2011, if it was proved that services were received before 01.04.2011, the credit taken after 01.04.2011 shall be admissible to the assessee.
The two-member bench comprising Ramesh Nair (Judicial) and C L Mahar (Technical) remanded the matter back to the adjudicating authority due to the reason that the Adjudicating Authority had not examined the actual date of receipt of service.