Formula in rule 6(3A) of CENVAT Credit Rules, 2004 uses 'total credit taken' and not 'common credit'

Cenvat Credit : Formula in rule 6(3A) of CENVAT Credit Rules, 2004 uses 'total credit taken' and not 'common credit'; hence, while making reversal, total credit (including that relating exclusively to taxable goods/services) will be used
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[2014] 52 taxmann.com 418 (Mumbai - CESTAT)
CESTAT, MUMBAI BENCH
Thyssenkrupp Industries (I) (P.) Ltd.
v.
Commissioner of Central Excise, Pune*
P.R CHANDRASEKHARAN, TECHNICAL MEMBER
ANIL CHOUDHARY, JUDICIAL MEMBER
ORDER NO. S/459/14/EB/C-II
APPLICATION NO. E/S/94212/14
APPEAL NO. E/86112/14
JULY  18, 2014
Rule 6 of the Cenvat Credit Rules, 2004 - CENVAT Credit - Exempted and Dutiable Goods or Exempted and Taxable Services, Obligation of assessee - Period April 2011 to March 2012 - Stay Order - Assessee took input service credit of : (a) tax Rs. 20.6 crores used only in taxable goods/services; (b) tax Rs. 2.1 crores relating to common input services used for taxable and exempt goods/services - While making formula-based reversal as per rule 6(3A), assessee used common input service credit of Rs. 2.1 crores - Department used total input service credit of Rs. 22.7 crores - HELD : Factor "P" used in Rule 6(3A)(c)(iii) denotes 'total Cenvat Credit taken on input services during financial year' and not 'credit of common input services' and factors 'M' and 'N' also relate to total turnovers - Same principle applies to monthly reversal of provisional amounts - If formula results in anomalous situation, it is for Legislature to amend law - Hence, prima facie, demand was to be determined by using total input service credit of Rs. 22.7 crores - However, if assessee had chosen not to avail Credit on common input services, liability would only be Rs. 2.1 crores and since Rs. 0.7 had already been deposited, pre-deposit was ordered at Rs. 1.4 crores [Para 5] [In favour of assessee]