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TMI Blog2019 (6) TMI 1498X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been a different case if the project had run for some time and some goods were manufactured and thereafter the project was abandoned. In this case the appellant decided to abandon the project before it is even set up - Under these circumstances, it is found that by no stretch of imagination can the services on which CENVAT Credit has been availed, be related to the manufactured final products either directly or indirectly or any business related to such manufactured products. Extended Period of Limitation - penalty - HELD THAT:- The assessee cannot plead ignorance. They are a very large Public Sector Undertaking in operation for several decades and have been handling the matters of indirect taxation. Under these circumstances, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .86 Crores and took CENVAT Credit of ₹ 1,13,14,936/- on the services which they have availed. Subsequently, they decided to abandon the project insofar as Seemless Tube Mill Project is concerned. In other words, no production whatsoever was done under this project. A show cause notice dated 11.09.2009 was issued for this CENVAT Credit availed during the period February 2007 to April 2008 seeking to deny and recover the aforesaid CENVAT Credit along with interest under Rule 14 of CCR 2004 read with proviso to Section 11A of Central Excise Act, 1944 and Section 11AB of Central Excise Act, 1944. It was also proposed to impose a penalty on them for contravention of the provisions of CCR 2004 under Rule 15. The show cause notice alleged th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blished between the services rendered and the business carried on by the assessee and the services rendered in relation to modernization proposal which was dropped had no nexus whatsoever to the manufacture of the goods or rendition of services by the appellant. The assessee has never declared to the department that they have abandoned the Seemless Tube Mill Project in any manner whatsoever. They have filed periodical ER-1 returns but that does not come to their rescue as taking input services related to unimplemented expansion programme, was not revealed at any stage. They have taken credit on such ineligible services suppressing the fact that Seemless Tube Mill Project had been abandoned. They ought not to have taken such credit since it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Bombay in the case of Ultratech Cement Limited [2010(20)STR 577 (Bom.)] to ascert that the term input service covers in the services used directly in relation to manufacture but also various services in relation to the business of manufacture whether prior to manufacture or thereafter. (b) The extended period of limitation cannot be invoked because they filed ER-1 returns regularly. He also prayed that no penalty may be imposed upon them. 4. Ld. DR reiterates the findings of the impugned order and asserts that the appellant is not entitled for the benefit of CENVAT Credit which was wrongly availed and the same needs to be recovered. 5. We have considered the arguments on both sides and perused the records. The facts are not in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry 2007 and April 2008. There is nothing to show that after they have decided to abandon the project in February-March 2008, they have either reversed the CENVAT Credit or informed the department. In the regime of self assessment, the assessee is required to take reasonable precautions to take credit and pay duty etc. as per law. When there is no explicit provision which entitles them to continue using CENVAT Credit on the abandoned project, the least that could have been expected from the assessee was to inform the Department that they have abandoned the project even if they were under the impression that they were entitled to CENVAT Credit. The assessee cannot also plead ignorance. They are a very large Public Sector Undertaking in operat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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