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TMI Blog2017 (1) TMI 1234X X X X Extracts X X X X X X X X Extracts X X X X ..... ncerned, I do not find any infirmity in the impugned order. Levy of penalty u/r 15(2) of the CENVAT Credit Rules - Held that: - unless and until there is a finding that there was suppression of fact and irregular availment of CENVAT credit, the question of levying penalty under Rule 15(2) of the said Rules does not arise - Moreover, in this case the appellant reversed the duty along with interest on being pointed out by the Department and there was no intention to evade payment of duty as is required under Rule 15 read with Section 11AC - penalty set aside. Appeal disposed off - decided partly in favor of assessee. - E/21041/2015-SM - 21512/2016 - Dated:- 29-12-2016 - Shri S.S Garg, Judicial Member Mr. K. Girish, Consultant, F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause notice was issued to the appellant. Appellant filed reply to the show-cause notice and asserted that they are eligible for the CENVAT credit in respect of market consultancy services. They have further submitted that as per their agreement between M/s. Carl Bechem Lubricants India Pvt. Ltd. and M/s. Carl Bechem Lubricants Middle East FZC, the scope of the service is for promoting the Bechem products manufactured in India. After following due process, the Assistant Commissioner confirmed the demand and appropriated the amount paid by the appellant along with interest and also imposed equal penalty or ₹ 1,47,669/- on the appellant under provisions of Rule 15 of CCR, 2004 read with Section 11AC of the Central Excise Act, 1944. Aggri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e traded goods. He further submitted that in terms of Rule 2(e) of CCR, 2004, the definition of 'exempted service' includes trading w.e.f 1.4.2011. In other words, the trading activity is an exempted service' and the appellant has exported the 'exempted service', which amounts to export of service. 5. On the other hand, the learned AR defended the impugned order and submitted that the appellant is not entitled to the proportionate CENVAT credit attributable to the traded goods. He further submitted that as per the definition of 'input service', the service tax paid on marketing consultancy of traded goods cannot be considered as an 'input service' as the said service tax is not used in or in relation t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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