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2015 (11) TMI 657 - AT - Service TaxDenial of CENVAT Credit - GTA Service and Manpower Recruitment Agency services - Non maintenance of separate accounts - Held that:- Admittedly they were reflecting the entire facts in the returns filed by them to the Revenue. Revenue was aware of the fact that appellant is manufacturing dutiable as also exempted final products and is availing CENVAT credit of service tax paid on the entire services so received by them. Even then no objection was ever raised by them and it was only at the time of audit, that the said legal issue was raised. As such, I am of the view that there is no malafide on the part of the assessee, with an intent to evade payment of duty. The appellants are manufacturing dutiable goods to the extent of 95% and only a very small percentage is of exempted final products, which is clear from the chart of productions for various years, placed on record by the appellant. During the year 2006-07, percentage of production of exempted goods was to the tune of 0.10% and during 2007-08, it was 0.04%. It is only in the year 2009 that the percentage increased to 1.22%. Inasmuch the major part of the appellants final product was dutiable, which was being cleared on payment of duty, the availment of CENVAT credit in respect of various services to the extent of 100%, cannot be held to be reflecting on any malafide on the part of the assessee so as to invoke the longer period of limitation. As such, I am of the view that the demand falling within the limitation period would only survive. The lower authorities would re-quantify the said demand along with interest. - Imposition of penalty upon them is not called for. Accordingly, the same is set aside - Decided in favour of assessee.
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