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2019 (11) TMI 1618 - AT - Central ExciseCENVAT Credit - Advocate’s Fees - consultancy charges - club membership expenses - reversal of CENVAT Credit - suppression of facts or not - penalty - HELD THAT:- The issue is no longer res-integra and is squarely covered by the decision of the Tribunal in M/S SUNDARAM CLAYTON LTD. VERSUS CCE, CHENNAI - II [2016 (6) TMI 161 - CESTAT CHENNAI] wherein it was held “(e ) Legal services are availed for statutory compliance which is the duty of the assessee to comply and the credit cannot be denied for such services since it has relevancy to the activity of manufacture. Once there is legal obligation and the assessee has to discharge the same irrespective of the manufacture being done but, business to be carried out, cenvat credit of service tax paid on such count is undeniable.” - the Cenvat Credit on legal charges and consultancy charges cannot be denied to the Appellant and thus, the demand on that score is set aside. Club membership subscription - HELD THAT:- It is seen that the said expense is not in direct relation to the business of the Appellant but for personal use of the director of the Appellant and thus the said Credit cannot be allowed under Rule 2(l) of the CCR, 2004. Hence, the amount of ₹ 612/- is liable to be reversed. Reversal of CENVAT Credit - HELD THAT:- The contention of the Appellant that the Appellant followed the procedure laid down in Rule 6(3)(b) of the CCR, 2004 for proportionate reversal of Cenvat credit during the said period which is also verified by the submissions and calculations produced by the Appellant on this score, it is held that the Appellant cannot be asked to reverse again what the Appellant has already reversed under the said Rule 6 of CCR, 2004. Penalty - HELD THAT:- The department has not established any suppression of facts by the Appellant and thus the penalty imposed is set aside. Appeal allowed.
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