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2013 (7) TMI 466 - AT - Central ExcisePenalty under Rule 15(4) of Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944 - Demand of interest under rule 14 of the Cenvat Credit Rules, 2004 read with Section 11AB of the Central Excise Act, 1944 - The appellants are availing Cenvat Credit of duty paid on inputs and capital goods as well as Service Tax paid on input services under Cenvat Credit Rules, 2004 - Appellant had paid service tax in terms of Section 66A of the Finance Act, 1994 read with Rule 2(d )( iv) of Service Tax Rules, which was paid as recipient of services on commission paid to foreign agents M/s. Matrix Resources PTE Ltd., Singapore in connection with purchase of Nickel - Appellant availed Cenvat Credit of the said Service Tax even though they had not received physical delivery of the Nickel in their factory - Services were utilized for trading activity but were not used directly or indirectly in manufacturing activity - Held that:- As per the decision in COMMISSIONER OF C. EX., JAIPUR-I Versus PUSHP ENTERPRISES [2010 (11) TMI 835 - CESTAT, NEW DELHI], the ER-1 Returns disclosed the availment of Cenvat Credit but since there is no requirement for enclosing the invoices or giving the details of such credit - Once ER-1 Return is filed, even though it is filed under self-assessment system, the officers are supposed to scrutinize the same – Appellant taken Cenvat credit in respect of certain input services, which according to the Department was not admissible to them, it cannot be concluded that the credit had been taken knowing very well that the same was not admissible, unless there is some evidence in this regard - Moreover, when the quantum of service tax credit availed had been disclosed, the officers were always free to inquire from the respondent about details of the same and satisfy themselves about its correctness – Appeal allowed – Decided in favor of Assessee.
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