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2015 (1) TMI 1199 - AT - Service TaxCENVAT Credit - availment of the Cenvat Credit on the invoices received prior to service tax registration - Credit availed on housekeeping and hotel services charges paid - Revenue is of the view that the appellant is not entitled to take Cenvat Credit on service received prior to service Tax registration and the Housekeeping and hotel services charges are not related to their business of manufacturing as this services have been availed outside the factory premises and in residential colony - Invocation of extended period of limitation - Held that:- Following decision of MPortal India Wireless Solutions Pvt. Ltd Vs. CST reported in [2011 (9) TMI 450 - KARNATAKA HIGH COURT] - appellant is entitled to take Cenvat Credit on the invoices received prior to Service tax registration. For availment of Cenvat Credit for housekeeping services and hotel service charges which has been availed by the appellant in residential colony or for individuals. Therefore, I hold that Cenvat Credit on these services is not available to the appellant. Further, I find that during the course of the audit it was pointed out that appellant has taken inadmissible Cenvat credit and appellant has not paid inadmissible Cenvat credit. In these circumstances, revenue has rightly invoked the extended period of limitation. In these circumstances, I confirm the demand of ₹ 47,182/- to be paid by the appellant along with interest. With regard the penalty as the services is new and appellant has taken the Cenvat Credit on House keeping services which may be utilized for the business purposes of the appellant. Therefore, on that part of the input services credit the penalty is not imposable. But for the hotel services availed by the appellant, the penalty is confirmed - Decided partly in favour of assessee.
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