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TMI Blog2018 (3) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... vil structure is falling under the Exclusion Clause contained in the definition of “input service” under Rule 2 (l) of the Rules - Held that: - the services were provided in relation to the painting of the factory building and plant & machinery, which are appropriately classifiable under category of “renovation or repair of the factory” contained in the Inclusive part of the definition of the “input service” - such service falls under the purview of the “input service” for the purpose of availment of cenvat credit - denial of credit and imposition of penalty not sustainable. Appeal allowed - decided in favor of appellant. - Excise Appeal No.51785/2017(SM) - A/50659/2018-SM[BR] - Dated:- 29-1-2018 - Shri S. K. Mohanty, Member (Judicial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of building and falls under exclusion clause of the definition of input service contained in Rule 2 (l) of the Cenvat Credit Rules, 2004. Besides confirmation of the Cenvat credit demand, the Original Authority has also imposed equal amount of penalty of ₹ 1,82,242/- on the appellant under Rule 15(2) of the Rules 2004. The ld. Commissioner (Appeals) vide the impugned order dated 7.9.2017 has upheld the adjudged demand confirmed on the appellant. Hence, the appellant has filed this appeal before the Tribunal. 2. Ld. Advocate appearing for the appellant submits that change in the classification of the goods and payment of duty @10.30%was brought to the notice of the Department in ER-I returns filed for the relevant period. Thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of Section 11 AC of the Act for imposition of equal amount of penalty. Since the said statutory provisions mandates imposition of penalty only in case of fraud, suppression, willful mis-statement, etc., with intent to evade payment of duty, which in this case is absent, I am of the considered view that imposition of penalty by the Authorities below under Section 11 AC of the Act cannot be sustained. 6. With regard to the availment of cenvat credit of the service tax on painting of the factory building machinery, I find that the Authorities below have denied cenvat credit on the ground the construction of building or civil structure is falling under the Exclusion Clause contained in the definition of input service under Rule 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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