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2019 (12) TMI 233 - CESTAT ALLAHABADCENVAT Credit - Benefit of abatement - construction activities - Inasmuch as, the respondents availed the Cenvat credit in respect of inputs as also input services and simultaneously availed the benefit of Notification No.1/2006-ST, as amended, revenue initiated proceedings against them for denial of the credit - HELD THAT:- The service tax assessee providing construction services is entitled to either the Cenvat credit or the benefit of abatement in terms of N/N.1/2006-ST. If both the facilities are availed by an assessee simultaneously, one of them has to be denied - In the present case, the revenue, at the time of issuance of show cause notice accepted the assessee’s option of availment of Notification No.1/2006. In such a scenario, the credit availed by the assessee was required to be reversed, for which purpose show cause notice was issued. The respondent cannot be allowed to avail both the benefits i.e. availment of the Cenvat credit as well as the abatement. The show cause notice has extended the larger benefit of abatement to the assessee in terms of the notification and in that context directed them to pay back the Cenvat credit so availed by them. The assessee cannot be allowed to retain both the benefits on the technical grounds that the notice disallowed the Cenvat credit which was availed prior to availment of abatement of notification - there are no merits in the above reasoning of the lower authorities and accordingly reverse the said decision. The benefit of abatement Notification No. 1/2006-ST, as amended, is more beneficial to them and they should be allowed to retain the benefit of the same - Cenvat credit so availed by them is required to be reversed - appeal allowed - decided in favor of appellant.
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