SOBHA DEVELOPERS LTD. Vs. CCE & ST, BANGALORE

JUDGEMENT

(1.) ON a perusal of the records and hearing both sides, we find that, for the present purpose, the question to be considered is whether the debit of CENVAT credit available as on 29 -6 -2010 in the CENVAT credit register of the appellant towards payment of Service tax for the period from November to December, 2009 is legally in order. The appellant debited a total amount of Rs. 7,97,09,746/ -, under protest, towards Service tax liability pertaining to the aforesaid period but the same has not been accepted for appropriation in the impugned order. In this context, the learned counsel has usefully referred to Circular No. 962/05/2012 -CX., dated 28 -3 -2012 of the C.B.E. & C. This Circular clarifies to the effect that CENVAT credit accruing on a given date to a manufacturer of excisable goods could be utilized for payment of arrears of duty for a period prior to the said date. Drawing a parallel between Section 11A of the Central Excise Act considered in the above Circular and Section 73 of the Finance Act, 1994 relevant to the instant case, the learned counsel has claimed a prima facie case for the present purpose. We have heard the learned Commissioner (AR) also.

(2.) PRIMA facie, the appellant gets legitimate support from the above Circular to the proposition that CENVAT credit which accrued to the appellant on 29 -6 -2010 could be utilized for payment of arrears of Service tax for the period February to December, 2009. Therefore, there will be waiver of pre -deposit and stay of recovery in respect of the adjudged dues.