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2016 (7) TMI 654 - AT - Central ExciseExtended period of limitation - Levy of penalty - Cenvat Credit - input services - nexus with manufacturing activity - service tax paid on Travel Services relating to transport of their employees though transport of employees - Held that:- the appellant’s action of taking cenvat credit even on the part amount, which was recovered from the employees in case of facility of travel to and fro, is only a bonafide action; no malafides cannot be attached to the said action of taking cenvat credit. In the present appeal period involved is from 2005-06 to 2009-10. When the certainty for the principle that 'cenvat credit is not to be allowed in case of service tax paid on the component of the payment made by the employees for input service of travel' was decided by Hon'ble Bombay High Court by its pronouncement dated 25.10.2010 in the case of CCE, Nagpur Vs. Ultratech Cement Ltd. [2010 (10) TMI 13 - BOMBAY HIGH COURT], it cannot be held that the appellant had willfully suppressed the fact of irregular cenvat credit in case of input service of traveling. It is, therefore, right to conclude that the subject demand and recovery would be legally unauthorized beyond the normal period of one year from the relevant date. The case is remanded to the original adjudicating authority, who will freshly adjudicate and arrive at the revised liability of 'disallowed' cenvat credit along with liability of interest for the normal period of one year after following the observations and the conclusions made by the Tribunal in above paras. - Decided in favor of assessee.
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