2017 (9) TMI 775

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..... dispute as to availment of the CENVAT credit as the appellant is a manufacturer of organic chemicals and needs pest control in order adhere to Good Manufacturing Practices - there is no hesitation to hold that CENVAT credit availed of the service tax paid by the service provider of pest control services is eligible as credit. As regards the CENVAT credit availed on the service tax paid on civil w .....

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..... ld that: - since major portion of the CENVAT credit is held to be eligible visiting the appellant with penalty for the small portion which is availed, without any intention to evade or to avail ineligible CENVAT credit, penalties imposed are set aside. Appeal allowed - decided partly in favor of appellant.
Mr. M.V. Ravindran, Member (Judicial) Ms. A.S.K Swetha, Advocate, for the Appellant. Sh .....

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..... dhere to Good Manufacturing Practices. I have no hesitation to hold that CENVAT credit availed of the service tax paid by the service provider of pest control services is eligible as credit. 5. As regards the CENVAT credit availed on the service tax paid on civil works rendered for the construction of the factory, I find these civil works were rendered for construction of the factory from where t .....

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..... urement 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 up to place of removal." (emphasis supplied) It can be seen from the above reproduced definition that input .....

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..... of a factory post 01.04.2011 is to be held as not eligible. To that extent, the appellant is required to reverse CENVAT credit along with interest. 6. As regards the penalty, since major portion of the CENVAT credit is held to be eligible visiting the appellant with penalty for the small portion which is availed, without any intention to evade or to avail ineligible CENVAT credit, penalties imp .....

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