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2019 (5) TMI 1938 - CESTAT MUMBAIReversal of CENVAT Credit - Ocean Freight - It appeared to revenue that Ocean Freight was not defined in taxable service under section 65 (105) of the Finance Act, 1962, till 30.06.2012, and from 1.7.2012, Ocean Freight appeared in negative list under section 66D(p) of the Finance Act, 1944, as a non-taxable service - HELD THAT:- Rule 2 (e) of Cenvat Credit Rules Credit Rules, which defines exempted service, have been substituted from time to time and finally it was clarified by way of substitution, with effect from 1 March 2016, that exempted service does not include Ocean Freight. It is held that the said explanation and/or clarification relates back to the date since the said rule exists on the statute. Accordingly the show cause notice is not sustainable. It is also held that show cause notices issued are by way of change of opinion. Further there is no case made out of any suppression of facts or contumacious conduct, as the transactions were duly found recorded in the books of accounts maintained in the ordinary course of business. The appeal is allowed and the impugned order is set aside. The Appellant is entitled to consequential benefits in accordance with law. It is also held that under the facts and circumstances there being no allegation of taking of ineligible Cenvat Credit, it is held that Rule 14 of CCR is not attracted.
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