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2013 (4) TMI 219 - AT - Central ExciseCenvat Credit of various input services - Penalty imposed under Rule 15(3) of Cenvat Credit Rules, 2004 - Held that:- As regards construction service, it was submitted that appellant had constructed a factory building on the other side of the road. According to the definition of ‘input service’ included service used in relation to setting up of a factory also. It was also submitted that subsequently the factory has been registered and the registration number for the existing factory on the other side of the road and for the new factory set up is one and the same. So long as the manufacturer has used the service for setting up of a factory, the credit is admissible. As regards security services, the learned DR fairly admitted that this service is one of the services recognized as common service which when used by a manufacturer in respect of exempted goods as well as the dutiable goods credit can be taken. Therefore Cenvat credit of service tax paid on security service is held to be admissible and allowed. As regards GTA service and telephone service, both sides agree that these two services are not covered by the list of common services in respect of which credit would be admissible that used for exempted as well as dutiable goods. In such a situation, assessee is required to maintain separate records for taking the credit and its utilization. Since assessee has failed to maintain separate accounts, the credit availed in respect of these two services has to be disallowed and has rightly been disallowed. Since the demand comes down subsequently to less than Rs. 35,000/-, having regard to the size of the appellant and the amount involved, I consider it appropriate that the penalty is to be set aside. While doing this I also take note of the fact that the show-cause notice has been issued within the normal limitation time. The appeal is disposed of in the above terms.
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