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2018 (2) TMI 929 - AT - Service TaxCENVAT credit - angles, channels and beams etc., used to erect the towers and pre-fabricated buildings on which transmission equipments were installed - Held that - identical issue has been decided by this Bench in M/s. Bharat Sanchar Nigam Ltd., Versus CCE, C & ST, Hyderabad-III 2017 (2) TMI 439 - CESTAT HYDERABAD , wherein the Bench on merits held against BSNL, holding that Cenvat Credit is not to be allowed on the angles, channels and beams etc., Which are used for fabrications of transmission towers it also held that demand beyond the period of limitation from the date of Show Cause Notice, is unsustainable and penalties are not warranted - demand within the limitation period from the date of issuance of Show Cause Notice is upheld with interest and penalties are set aside - appeal disposed off.
Issues Involved:
1. Eligibility of Cenvat Credit on items purchased for towers. 2. Appeal against Show Cause Notices invoking extended period for demand of Cenvat Credit. 3. Challenge against Order-in-Original regarding Central Excise Duty on battery equipment. Eligibility of Cenvat Credit on items purchased for towers: The appeals filed by BSNL revolve around the eligibility to avail Cenvat Credit on items like angles, channels, and beams used for towers. The counsel for BSNL argued that a previous Final Order by the Bench favored them on this issue. However, the Departmental Representative contended that BSNL, being in the organized sector, was aware of the ineligibility for Cenvat Credit on such items. The Tribunal noted that a previous decision had held against BSNL on the same issue, citing judgments from the High Court and a Larger Bench supporting the Revenue's stance. Consequently, the Tribunal upheld the decision that BSNL was not entitled to avail Cenvat Credit on these items for tower erection. Appeal against Show Cause Notices invoking extended period for demand of Cenvat Credit: In the case of appeal No. ST/925/2009, the Tribunal found that the demand beyond the limitation period from the date of Show Cause Notice was unsustainable. While the demand within the limitation period was upheld, penalties were set aside. The Tribunal emphasized that the issue was interpretational, leading to confusion and differing views, warranting the setting aside of penalties and demands beyond the limitation period. The judgment cited relevant legal precedents and concluded that penalties and demands within the normal period, not barred by limitation, were upheld. For appeal No. ST/30386/2017, the Tribunal observed that the Show Cause Notice invoking an extended period for demand of Cenvat Credit for the period 2012-2013 was not valid. Previous Show Cause Notices on similar grounds had been issued to BSNL, making the invocation of an extended period in the current appeal untenable. Citing legal precedents, the Tribunal allowed the appeal and set aside the contested Order. Challenge against Order-in-Original regarding Central Excise Duty on battery equipment: Regarding appeal No. ST/30554/2017, the Tribunal found merit in the Revenue's challenge against the Order-in-Original. It was noted that the adjudicating authority had incorrectly dropped the demand related to Central Excise Duty paid on battery equipment. The Tribunal determined that the amount in question actually pertained to items like angles, beams, and channels, making BSNL ineligible for Cenvat Credit. Consequently, the Tribunal allowed the Revenue's appeal and set aside the proceedings related to the disputed amount. In conclusion, the Tribunal disposed of the appeals based on the specific issues discussed, upholding certain demands within the limitation period, setting aside penalties, and ruling on the eligibility of Cenvat Credit for the items in question. ---
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