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2013 (3) TMI 4 - CESTAT AHMEDABADCenvat credit of the service tax paid on the commission to the commission agents denied - Held that:- As decided in Cadila Healthcare Ltd. [2013 (1) TMI 304 - GUJARAT HIGH COURT] service tax is ineligible for availment of cenvat credit on this issue, thus appeal to that extent is rejected - against assessee. Equivalent amount of penalties under Rule 15 of the CCR, 2004 read with provisions of Section 11AC of the Central Excise Act, 1944 - Held that:- Finding strong force in the contentions raised by the appellant that during the relevant period, there were decisions which indicated that service tax paid on the commission to the commission agents is eligible for availment of cenvat credit and accordingly appellant availed the cenvat credit. It is also undisputed that the appellant is a manufacturer and was filing regular monthly ARE-1 returns to the authorities and indicating therein availment of such cenvat credit. Thus the action of the appellant in taking the cenvat credit of the service tax to the commission agents could be out of bonafide belief as to eligibility to cenvat credit as it is in relation to the business of manufacturing and selling - the said bonafide belief of the appellant cannot be considered as erroneous and that too, to invoke the extended period of limitation for imposition of equivalent amount of penalty, thus setting aside the penalties imposed by the lower authorities - in favour of assessee.
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