2013 (7) TMI 188

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..... llant is engaged in manufacturing of CRGO transformer core. During the scrutiny of records, it was noticed that the appellant had availed CENVAT credit of service tax of Rs. 1,38,772/- on works contracts and consultancy fee of civil engineer for their unit-2. Credit was taken on 19.6.2008 and 1.10.2008. Proceedings were initiated for demanding the CENVAT credit on the ground that the same is not a .....

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..... to reverse the credit also because of the fact that show-cause notice was issued beyond the period of one year. He also submits that the credit could have been taken in unit-1 also since the definition of 'input service' provides for availment of CENVAT credit of service tax paid on services used for setting up of a factory also. Therefore he submits, on merits as well as on limitation, the appell .....

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..... setting up of a factory also. In this case, the appellant utilized the services for setting up unit-2. But for the fact that they took a separate registration for unit-2, the appellant could have easily and correctly taken credit in unit-1 also, being a manufacturer having one factory and setting up the second factory. The original authority denied credit on the ground that service was not receive .....

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..... ufacturer, Further, if credit could not be taken in unit-1, it could have been taken in unit-2 in any case. Moreover, even after taking the credit in unit-1, as submitted by the learned consultant, throughout period till the credit was reversed, the appellant had substantially more credit than what has been demanded and proceedings initiated. Under these circumstances, invocation of extended perio .....

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..... he demand for CENVAT credit cannot be sustained and consequently, the impugned order also cannot be sustained. Accordingly, the impugned order is set aside with consequential relief to the appellants. Before parting, it is necessary to clarify with regard to submissions, credit was reversed subsequently and in view of the decision that original principal amount could not have been demanded, the qu .....

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