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2012 (11) TMI 437 - AT - Service TaxRefund of cenvat credit - excise duty on packing materials - appellants have taken credit of excise duty paid in respect of the rice exports made by them – Held that:- Credit was taken since the appellant felt that instead of claiming the refund they take credit of the duty paid and utilise the same - Rule 5 of Cenvat Credit Rules also provides that when credit cannot be utilised, refund can be claimed - demand for interest and imposition of penalty cannot be sustained Regarding maintenance of guest house and security expenses towards guest house – Held that:- Prior to the issue got settled that such expenses are not admissible, there were decisions taking a view that service tax credit in respect of expenses incurred for worker's colony etc. are admissible - subsequently the issue has been settled against the appellants, the appellants are required to pay the interest on this amount but no penalty can be sustained Regarding seminar fees – Held that:- Seminars were related to their business only and prima facie it appears that it is admissible - demand for interest and imposition of penalty as regards seminar fees also cannot be sustained Regarding Share related expenses – Held that:- It is required to be incurred by any Public Limited Company and it cannot be said that this has nothing to do with business - appellant cannot be found fault with for entertaining bona fide belief about the admissibility and therefore penalty cannot be sustained. Since the appellants are not disputing the denial of service tax, interest would be payable Regarding stock broker service, Entertainment expenses and Membership subscription expenses – Held that:- Demand for interest in respect of these three items are upheld as not disputed - this is a case where provisions of Section 80 can be invoked - waiver of penalty under Section 80 of the Finance Act allowed - no penalty shall be payable - in respect of all services where credit is not admissible, the appellant shall be liable to pay interest
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