Hindustan Coca-Cola Beverages Pvt Ltd Vs Commissioner of CGST & Customs (CESTAT Mumbai)
CESTAT Mumbai held that the obligation under rule 3(1) of CENVAT Credit Rules, 2004 [CCR, 2004] cannot be transferred to the recipient of credit under rule 7 of CENVAT Credit Rules, 2004. Accordingly, order is without authority of law and liable to be set aside.
Facts- M/s Hindustan Coca-Cola Beverages Pvt Ltd, who had been proceeded against for recovery of ₹ 24,12,150 and ₹ 11,56,666 under rule 14 of CENVAT Credit Rules, 2004, along with interest thereon, for having utilized credit that did not conform to definition of ‘input service’ in section 2(l) of CENVAT Credit Rules, 2004 and confirmation by the original authority, having been upheld by Commissioner of GST & Customs (Appeals), Goa except to the extent of ₹ 19,159 for the period from June 2015 to March 2017 and ₹ 2,03,804 for April 2017 for the period to June 2017, is before the Tribunal with the plea that the demand could not have been fastened on them as they were merely the recipients of distributed credit.
Conclusion- Held that the impugned order has confirmed the recovery of credit taken, and distributed under rule 7 of CNEVAT Credit Rules, 2004, by the ‘input service distributor (ISD)’ by subjecting it to scrutiny for eligibility thereof by reference to the activities undertaken by the appellant herein. The appellant herein has merely utilized the credit and, to the extent that rule 3(4) of CENVAT Credit Rules, 2004 has not been shown to have been breached, is not concerned with the source of the credit. The obligation under rule 3(1) of CENVAT Credit Rules, 2004 cannot be transferred to the recipient of credit under rule 7 of CENVAT Credit Rules, 2004.
