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Judgment
In all these appeals the common issue involved is that whether the appellant has correctly paid/reversed the amount as required under Rule 6(3)
when common Input/Input Services used in exempted goods/exempted services and dutiable goods/taxable services.
Heard both the sides and perused the records. We find that in identical issue of the appellant’s own case, bunch of appeals was heard on
02.12.2021 & 06.01.2021 and vide Order No. A/11300-11307/2021 dated 31.03.2021 the matter was remanded to the adjudicating authority for fresh
denovo adjudication. The relevant order portion is reproduced below:
“4. We have carefully considered the submissions made by both the sides and perused the records. We find that the appellant have
pointed out the glaring mistake in calculation of amount which is required to be paid under Rule 6(3) of Cenvat Credit Rules when the
input/input service is used commonly in dutiable/taxable and exempted goods/services.
4.1 We prima facie find that there is indeed serious error in calculation of the amount to be paid under Rule 6(3). As regard the terms
“total Cenvat Credit†to be considered for the formula as provided under Rule 6 (3A), the various judgments were cited by the learned
counsel. It also appears that there is a duplication of demand in as much as Show Cause Notice issued on monthly reversal as well as on
yearly reversal. The Adjudicating Authority has also not properly considered the “total Cenvat Credit†that whether the clearances
made to SEZ and deemed export under Notification No.108/95-CE dated 28.08.1995 should be taken as exempted clearances or otherwise.
Likewise there are serious discrepancies in the Show Cause Notices which are purely on a factual matrix. Therefore, we are of the view that
in all these appeals, the matter needs to be remitted to the Adjudicating Authority for proper appreciation of the facts and correct calculation
of demand, if any arise. The Adjudicating Authority also must take the cognizance of various judgments cited by the learned counsel.
Accordingly, the impugned orders are set aside and matters are remanded to the Adjudicating Authority for fresh Denovo Adjudication.
CO also stands disposed of.†Since in the above order matter was remanded for fresh denovo adjudication this matters also need to be
reconsidered.
Accordingly, all the appeals along with CO disposed of by way of remand to the adjudicating authority for denovo adjudication considering the
observation made in the above order dated 31.03.2021.
(Pronounced in the open court on 24.06.2021)