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2014 (1) TMI 357 - AT - Service TaxDisallowance of Cenvat credit - Dismantling of plants - Penalty u/s 11AC - Held that:- dismantling of plant by no stretch of imagination can be held to be input service. Normally input gives rise to tangible output without ending in no output. Nothing more to add for no legal basis advanced by the appellant to show that the activity in question was relevant, indispensable and intimately connected with manufacture or in relation to manufacture or providing output service. When the basic requirement of Rule 2(l) of Cenvat Credit Rules, 2004 was not satisfied, the appellant is not entitled to Cenvat credit - there is no observation in the appellate order about existence of ingredients of Section 11AC of Central Excise Act, 1944 to lend credence to Rule 15 of Cenvat Credit Rules, 2004. It appears to be an interpretation error by the appellant without any mala fide to abuse Cenvat credit. Therefore, there shall not be penalty in respect of the disallowance of Cenvat credit - Decided partly in favour of assessee.
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