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2015 (11) TMI 709 - AT - Central ExciseDenial of CENVAT credit of service tax - Construction of primary school as also ST/SC colony - Nexus with Manufacture - Imposition of penalty - Held that:- The construction of the first floor of a school and the construction of colony for the SC/ST cannot be said to be having any nexus, whatsoever, with the manufacturing activity of the appellant. Even if the said construction activities, which are in the nature of community developments, were not taken by the appellants, the appellant s activity of manufacture and sale of excisable goods would have continued. Similarly the said construction activity has no connection with the appellant s business of manufacture and sale of their final product. The definition of input services cannot be stretched to such an extent that it is becomes practically illogical. If such an extended meaning is given to the said definition so as to include all the activities of the appellants, whether or not relatable to his business, the definition would lose its meaning, intended to be given by the legislation. I find no justifiable reasons to interfere in the impugned order of the lower authorities holding the said activities as non-cenvatable services. Period of limitation - There being no positive evidence on the part of the assessee to show that there was any suppression or mis-statement with any mala fide intent, I hold the first demand to be barred by limitation. For the same reasons, the penalty imposed upon the appellant is also set aside - Decided in favour of assessee.
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