9911796707
TMI Blog2018 (5) TMI 1340X X X X Extracts X X X X X X X X Extracts X X X X ..... AR)- For the Respondent Order Per: S.S Garg The present appeal is directed against the impugned order dated 24.07.2013 passed by the Commissioner (Appeals) whereby the Commissioner (Appeals) has rejected the appeal of the appellant and upheld the demand of irregularly availed credit on Outdoor Catering Services. Briefly the facts of the present case are that the appellant is engaged in the manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he due process, the liability was confirmed along with interest which was reversed by the appellant under protest. Besides this the appellant was imposed penalty of Rs. (Rupees Five Lakhs only) under Section 11AC of the Central Excise Act, 1944 read with Rule 15(1) of the Cenvat Credit Rules 2004. 2. Heard both the parties and perused the records. 3. Learned counsel for the appellant submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finition of 'input service' and accordingly the appellant is not entitled to take the cenvat credit of the same. The learned counsel for the appellant submitted that the imposition of penalty of Rs. (Rupees Five Lakhs only) is not warranted by law. During the relevant time there were conflicting decisions on both sides and therefore under a bona fide belief he has taken the cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , since the issue was relating to interpretation of Rule 2(I) of Cenvat Credit Rules, the penalty is not imposable. Moreover, there is no allegation against the appellant for suppression with intent to evade payment of duty. In view of this, the penalty is dropped. Consequently, the appeal is partly allowed.
(Operative portion of the order was pronounced in open Court on 01/03/2018)
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