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2013 (9) TMI 551 - AT - Service TaxEligibility for CENVAT credit – Penalty under Rule 15 - Whether the assesse would be eligible for Cenvat credit of service tax paid on services of renting of immovable property and services of club membership - Held that:- As such membership of the club would be covered by the definition of input services - This was an association of engineering products manufacturers and the association provides the market related information, information about new technology, etc., to its members which was essential to carry out business and such information was the basic need of an industry to stand in competition in the market. - . However, appellant has not shown as to how the membership of India International Centre, New Delhi has the nexus with the manufacturing business and as such the services tax paid on the membership fee of this club is not cenvatable. - Decided against the assessee. Renting of Car Parking Space - Held that:- The car parking space had been used for parking of the vehicles of the assesse-company and its officers and as such this service had nexus with the business of the assesse and had to be treated activity related to business – Repying upon - CCE, Nagpur Versus Ultratech Cement Ltd., [2010 (10) TMI 13 - BOMBAY HIGH COURT] - The service would have to be treated as an input service. Bar of Limitation - Held that:- Only normal limitation period would be available to the department for recovery of ineligible Cenvat credit - the assesse cannot be accused of suppression of the relevant information as it was not the allegation of the department that the appellant in terms of legal requirements were required to give invoice-wise and item-wise details of Cenvat credit which they had not given - Prolite Engg v. CCE[1990 (3) TMI 89 - HIGH COURT OF GUJARAT] – Order set aside. The matter remanded to the original adjudicating authority for re-quantification of the Cenvat credit demand - The penalty under Rule 15(1) would be only in proportion the Cenvat credit demand confirmed.
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