9911796707
TMI Blog2019 (5) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... these services are also not new construction and are necessary in order to carry out the manufacturing process and therefore, they are integral to the manufacturing process and is covered under the scope of input service as defined in CENVAT Credit Rules, 2004 - Credit allowed. Appeal allowed - decided in favor of appellant. - E/21878/2018-SM - Final Order No. 20397/2019 - Dated:- 6-5-2019 - SHRI S.S GARG, JUDICIAL MEMBER Mr. Girish K, Consultant For the Appellant Mr. Madhupsharan, Asst. Commissioner (AR) For the Respondent ORDER Per S.S. GARG, The present appeal is directed against the impugned order dated 27.4.2018 passed by the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant has availed CENVAT credit on work contract services used in Head Office for civil works and construction. The said service appeared to be excluded from the definition of input services under Rule 2(l) of the CENVAT Credit Rules, 2004. The irregularly availed input service tax on work contract services works out to ₹ 1,64,562/-. The appellant has paid the said amount of ₹ 1,64,562/- in their CENVAT account. Show-cause notice dated 28.11.2016 was issued demanding recovery of inadmissible credits of ₹ 1,95,275/-, ₹ 36,441/- and ₹ 1,64,562/- under the provision of Rule 14(1)(ii) of the CENVAT Credit Rules, 2004 with Section 11A(4) of the Central Excise Act, 1944; appropriation of amounts of ₹ 1,95,275/- a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the appellant has reversed ₹ 1,95,275/- which is excess credit on ISD and also ₹ 18,540/- on gardening services much before the issue of show-cause notice and the same has been appropriated by the original authority, and therefore, the authority should not have issued the show-cause notice in view of the various decisions of the Tribunal and the High Court. He further submitted that the CENVAT credit on works contract has been denied on the ground that after the amendment in the definition of input service from 1.4.2011, construction service is excluded from the definition of input service . He further submitted that in the present case, works contract is not new construction but relates to works contract service for con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er considering the submissions of both the parties and perusal of the material on record, I find that appellant has reversed the excess CENVAT credit on ISD credit and CENVAT credit on gardening services before the issuance of show-cause notice and is claiming the relief of penalty alone. Further, I find that once the appellant has reversed the CENVAT credit before the issuance of show-cause notice then in view of the various decisions cited supra, the penalty is not imposable as there is no suppression of facts with intent to evade payment of duty. 6.1 With regard to the denial of CENVAT credit on construction service, I find that as far as construction of ETP plant is concerned, in appellant s own case, this Tribunal has al ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
