INDIA GLYCOLS LTD. Vs. CCE

JUDGEMENT

(1.) IN the facts of the case, the requirement of pre -deposit is waived and with the consent of parties, we take up the appeal for final hearing and disposal.

(2.) THIS appeal filed by the assessee is directed against the order -in -original of the Commissioner of Central Excise, Meerut, dated 11.10.2007 directing recovery of a sum of Rs. 55,58,884/ - towards Service Tax to the tune of Rs. 54,49,842/ - and education cess to the tune of Rs. 1,09,042/ - from the appellant disallowing the Cenvat Credit utilized by the appellant between 01.01.2005 and 15.06.2005 in terms of Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11 -A of the Central Excise Act, 1944, and penalty of equal amount besides interest on the amount of Service Tax in terms of Section 11 -AB of the Central Excise Act.

(3.) IN view of the order that we propose to pass, it is not necessary to set out the facts of the case in details. Suffice it to say that the appellant availed cenvat credits in terms of the provisions of Rule 3 of the Cenvat Credit Rules, but on the ground that the payment of Service Tax under TR -6 challan cannot be treated as evidence and TR -6 challan cannot be considered as a prescribed document for the purpose of taking Cenvat Credit, the claim was rejected by the Commissioner. On behalf of the appellant, it was submitted that under Rule 9 of the Cenvat Credit Rules, Cenvat Credit can be taken by the manufacturer or the provider of output service or input service distributor, as the case may be, on the basis of any of the documents specified in Clauses (a) to (g) of Sub -rule (1). Challan is a relevant document in terms of Clause (e). The appellant paid Service Tax under TR -6 challan and filed the challans and therefore, it was entitled to avail Cenvat Credits. We find substance in the submissions of the counsel.