Case Law Details
Honda Cars India Limited Vs Commissioner of Central Goods and Service Tax, Customs and Central Excise (CESTAT Delhi)
FULL TEXT OF THE CESTAT DELHI ORDER
This appeal has been filed by M/s. Honda Cars India Ltd against demand of reversal of CENVAT Credit in terms of Rule 6(3A) of the CENVAT Credit Rules, 2004.
2. Learned Counsel for the appellant pointed out that the appellants are engaged in packing and labelling of automobile parts and safety headgear. The appellants are also engaged in trading of dyes which they get manufactured on job work and appellants are also engaged in supply of manpower services for manufacture of dyes inhouse. The appellants were therefore, engaged in activities which were liable to tax and also in trading activities which were not liable to service tax. Consequently, they became liable for reversal of CENVAT Credit in terms of Rule 6 of CENVAT Credit Rules, 2004. The appellants were not maintaining separate records of receipt, consumption of inventory of inputs and input services in terms of Rule 6(2) of CENVAT Credit Rules, 2004 and therefore, they opted to pay CENVAT Credit as determined under Rule 6(3A) of CENVAT Credit Rules, 2004 in terms of Rule 6(3)(ii) of CENVAT Credit Rules, 2004. The appellants were from time to time reversing the credit as prescribed under Rule 6(3A) in terms of formula prescribed therein. The appellants were submitting the detailed calculation on said reversal to the Revenue from time to time on annual basis. Learned Counsel pointed out that the amount of reversal was calculated by them in terms of Rule 6(3A)(c)(iii). He pointed out that the said clause (c) of sub-rule 3A of Rule 6 reads as under:
“(c) the manufacturer or the provider of output service shall determine finally the amount of CENVAT credit attributable to exempted goods and exempted services for the whole financial year in the following manner, namely :-
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