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2015 (7) TMI 1165 - AT - Central ExciseCenvat Credit - Sales Commission/’Dalali - Held that: - The matter is no more res integra in view of the decision of the Hon’ble High Court of Gujarat in the matter of CCE Ahmedabad II vs Cadila Healthcare Ltd [2009 (8) TMI 172 - CESTAT, AHMEDABAD], where it was held that such service tax is ineligible for availment of Cenvat credit on this issue. As regards penalty, the action of the appellant in taking the Cenvat credit of the service tax to the commission agents could be out of bona fide belief as to eligibility to Cenvat credit as it is in relation to the business of manufacturing and selling. I find that the said bona fide 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. In my view, the appellants have made out a case for setting aside the penalties imposed by the lower authorities. Accordingly, I set aside that portion of the order which imposes equivalent amount of penalty on the appellant under the provisions of Rule 15 of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. Appeal disposed off - decided partly in favor of appellant-assessee.
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