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2012 (10) TMI 952 - AT - Central ExciseBenefit of cenvat credit - Penalty u/s 11AC - Held that:- during the relevant period, there was no restriction for utilisation of such credit without allocating proportionately to various units. The omission to take registration as an Input Service Distributor can at best be considered as procedural irregularity and in view of the decisions cited, has to be considered sympathetically. Further, it is also noticed that appellant has not got any extra benefit by doing this - In fact, proper distribution would have enabled them to utilise full credit. It would show that the exercise is totally Revenue neutral and no loss has been caused to the Revenue (infact Revenue has gained). In the absence of any legal requirement to avail credit based on the services received during the relevant time and the procedural irregularity has to be ignored and the demand confirmed has to be set-aside on this ground. Since the credit has been availed which was not eligible and not admissible and which has been availed without knowledge of the department, extended period has been rightly invoked and the demand has been correctly confirmed - Decided partly in favour of assessee.
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