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2016 (9) TMI 182 - CESTAT NEW DELHICenvat credit - service tax paid on input services of technology development received - project didn't yield any result - service provider has returned back the same money as unsecured loan - mention of third party MERCK in the agreement made between the appellant and the service provider - Held that:- considering the facts of repayment by the service provider of service charges of ₹ 6,61,80,000/- as unsecured loan to the appellant; mention of a third party namely MERCK in the agreement; and the fact on record that this project of technology development for liquid filled hard gelatine capsule didn't give any result makes this full transaction of input service a suspect and put it in the category of sham transaction . Consequently, Revenue has rightly confirmed the demand of ₹ 6,61,80,000/- (alongwith interest) relating to cenvat credit wrongly availed by the appellant. Period of limitation - notice given by the Revenue was issued in January 2013 for the credit availed during March, 2010 - it is found that there has been wilful mis-statement and suppression on the part of the appellant with intention to wrongly claim the ineligible credit and Revenue could notice this fact only through their audit. Therefore, the Revenue has rightly confirmed the demand and imposed equivalent penalty on the appellant. - Decided against the appellant
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