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2013 (9) TMI 550 - AT - Service TaxDenial of CENVAT credit - credit distributed by the Input Service Distributors (ISD) - Held that:- Credit of Service Tax paid on input services used in manufacture of Crude Oil and Natural gas at Mumbai Offshore was not admissible to Uran Plant - credit was not admissible - Commissioner’s Order regarding confirmation of demand under Rule 14 of Cenvat Credit Rules, 2004 read with Section 11A of the Central Excise Act was upheld - interest on the demand amount was also recoverable under Rule 14 of Cenvat Credit Rules read with Section 11AB of Central Excise Act - JAYPEE REWA CEMENT Versus COMMISSIONER OF CENTRAL EXCISE, M. P. [2001 (8) TMI 1332 - SUPREME COURT OF INDIA]. Penalty - Imposition of Penalty on Uran Plant - Rule 15 had been amended with effect from 27-2-2010 incorporating input services in Rule 15(1) and 15(2) of Cenvat Credit Rules, 2004 - Therefore, penalty under Rule 15(1) and 15(2) was not imposable - under Rule 15(4) penalty was imposable on output service provider - Penalty was imposable only under Rule 15(3) of Cenvat Credit Rules and maximum penalty under Rule 15(3) - As regards imposition of penalty on ISDs penalty was proposed under Rule 25/26 of Central Excise Rules but in the Order-in-Original penalty was imposed under Rule 15 of Cenvat Credit Rules - Penalty needed to be set aside on this ground alone - Penalty had been imposed under Rule 15(4) of the Cenvat Credit Rules - Rule 15(4) as it existed during the relevant period pertains to imposition of penalty on output service provider - Accordingly, penalties imposed on ISDs were set aside - Appeal Partly allowed.
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