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2016 (8) TMI 846 - AT - Central ExciseCenvat credit - various input services - whether the captive mines of appellants can be considered as integrated with the main factory premises - Held that:- none of the input services on which credit has been availed by the appellant are excluded or barred by the provisions of the said Rule 2(l) as amended w.e.f. 01-03-2011. I also find that the said input services are very much in the nature of services directly or indirectly required in relation to the manufacturing /production activities carried out by the appellant at the impugned mine. In the circumstances, I hold that the disputed credits amounting to ₹ 83,823/- availed by the appellants on the aforesaid input services are eligible and correct in law. It is further held that appellants are eligible to avail the following disputed credits namely mining related work, Mines Garage Attendants works, Concrete pavement at Bulk Loading Area, Lab Modification work and Electrical Maintenance charges at other places amounting to ₹ 1,27,283/- and are ineligible to avail credit on Formation of New Gravel road for the reason that the said road has been laid outside the perimeter of the captive mines and hence cannot be considered as service in relation to manufacture of final products etc. in the factory. Regarding Conveyor Extension, shed extending work at Packing Plant and wagon loading, Borewell works, Providing Drain in railway siding, these are services in relation to construction or execution of works contract of the building or a civil structure or a part thereof or laying of foundation or making of structure for support of capital goods, hence they will be disbarred by the exclusion provision of the said Rule 2(l), as applicable during the relevant period. Therefore, these services found as ineligible for the purpose of the said Rule 2(l) amount to ₹ 1,01,645/-. However, keeping in mind that during the impugned period there did exist some lack of clarity on the eligibility or otherwise of credits relating to civil works etc and also noting that the appellant had filed ER-I returns all along, the penalty imposed under Section 11 AC of Central Excise Act read with Rule 15 of Cenvat Credit Rules, 2004, and the penalty imposed under Rule 25 of the Central Excise Rules, 2002, imposed by the adjudicating authority and upheld by the Commissioner (Appeals) cannot be sustained and will require to be set aside. - Appeal disposed of
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