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TMI Blog2011 (2) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... and no penalty is imposable, deserves to be accepted - The belief of the respondents that they were eligible to take credit of service tax paid on security services utilized in a captive saltpan cannot be treated as other than bonafide belief - Therefore, no demand can be sustained invoking the extended period and further penalties are not justified. - ST/525, 526/2010 - - - Dated:- 8-2-2011 - Hon'ble Mr. M. VEERAIYAN, Technical Member Appearance Shri C. Rangaraju, SDR, for the appellants Shri Savith V. Gopal, Adv., for the respondents Per: M. Veeraiyan, These two appeals are by the department arising out of common order-in-appeal No. 155 156/2010 dated 30.04.10. 2. Heard both sides extensively. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the security services were provided to saltpan. Therefore, he submits that the orders of the Commissioner (A) are not legal and proper and the same should be set aside and the orders of the original authority should be restored. 5.1 Ld. Advocate for the respondents strongly supports the orders of the Commissioner (A). The salt is undisputedly the input for the factory of the respondents and saltpan was also owned by the respondents and the entire salt produced in the saltpan is being utilized in the respondent's factory. The entire process is integrally connected. The respondents also procure raw materials from other saltpan as they are not able to meet the entire demand from the saltpan owned by them. The equipments in use in the saltp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal. and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating , share registry, and security, inward transportation of inputs or capital goods and outward transportation upto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so procuring salt from other saltpans. Salt is subject to nil rate of duty. Therefore, other independent suppliers of salt cannot avail credit of security services utilized in their saltpan. 8. However, the submissions of the Ld. Advocate that the issue involves interpretation of legal provisions and the respondents cannot be held to have suppressed any relevant information and that extended period is not invokable and no penalty is imposable, deserves to be accepted. The belief of the respondents that they were eligible to take credit of service tax paid on security services utilized in a captive saltpan cannot be treated as other than bonafide belief. Therefore, no demand can be sustained invoking the extended period and further pen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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