Case Law Details
CESTAT, NEW DELHI BENCH
Bharat Sanchar Nigam Ltd.
V/s.
Commissioner of Central Excise, Meerut-II
FINAL ORDER NO. 217 OF 2012 SM(BR)
APPEAL NO. e/2890 OF 2009 SM
MARCH 21, 2012
ORDER
1. Demand of Rs. 7,33,168/- stands confirmed against the appellants on the ground that during the relevant period they were providing taxable services as well as exempted services and inasmuch as they have not maintained separate accounts of inputs services and capital goods used in the above two types of services they were entitled to utilise only 20% of the credit. As they exceeded the said utilisation, duty stands confirmed against them by denying excess utilisation of Cenvat credit.
2. Learned Advocate submits that lower authorities have also taken into account the Service Tax availed on the capital goods whereas the restriction of 20% utilisation is only in respect of the input service credit. He draws my attention to two precedent decision of the Tribunal in the same appellants case being BSNL v. CCE&C [2009] 21 STT 127 (Bang.-Cestat) and BSNL v. CCE [Final Order No. A/265/2011, dated 28-3-2011]. It stands held in the said decision that the restriction to use 20% of the credit in case of non-maintenance of separate Cenvat accounts for taxable and exempted services is only in respect of inputs service credit. Matter stands remanded to the lower authorities for segregating said credit falling on the input services as also on capital goods and to decide the matter afresh.
3. By following the above decisions, I set aside the impugned order and remand the matter to original adjudicating authority for verification of the records and to restrict the credit utilisation only in respect of inputs service credit.
