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2016 (8) TMI 699 - AT - Central ExciseCenvat credit - service tax paid on rent-a-cab service - rent-a-cab service are employed for logistical purposes of employees of the factory of the assessee - period in dispute is January 2011 to June 2012 - Held that - as regards the cenvat credit for the period January 2011 to 31.3.2011 it is found that the issue is fairly settled in favour of the appellant in the case of Kakinada Seaports Ltd. v. C.C.E. John Deere India Pvt. Ltd. v. C.C.E. Pune III - 2015 (9) TMI 261 - CESTAT MUMBAI . Therefore the cenvat credit availed on service tax paid for the period January 2011 to 31.3.2011 is eligible to be availed as cenvat credit. As regards the cenvat credit on the service tax paid on the rent-a-cab for the period from 1.1.2011 it is found that the provisions of Rule 2(l)(B) of Cenvat Credit Rules 2004 excludes the category of rent-a-cab for availment of cenvat credit. Therefore in view of an unambiguous provisions, it is found that the appellant is not eligible to avail cenvat credit for the period subsequent to 1.4.2011. The said amount is to be recovered from the appellant along with interest. Imposition of penalty - Held that - it is found that the said penalty is upheld has not reversed the cenvat credit which he has improperly availed; as the provisions of Rule 2(l) were effective from 1.4.2001 and they should not have availed the cenvat credit of the service tax paid on the rent-a-cab service. - Appeal disposed of
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