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2016 (11) TMI 630 - AT - Central ExciseWrong availment of cenvat credit - charges paid to a person situated abroad for the services rendered on installation of office machinery to foreign clients - reverse charge mechanism - Held that: - the appellant is not eligible to avail cenvat credit of the amount paid as service tax under reverse charge mechanism as these services are outsourced by the appellant to a person situated abroad. These services cannot be, by any stretch of imagination, considered as services which are used for the manufacturing of the final product. In my view, the cenvat credit availed by the appellant of the amount of ₹ 2,72,794/- is erroneous and has been correctly confirmed by the lower authorities. I uphold the impugned order of the confirmation of the demand along with interest. Imposition of penalty u/r 15(4) of the Cenvat Credit Rules, 2004 - Held that: - the appellant could have been under bona fide belief that they can avail the cenvat credit. Since the appellant has already discharged the demand of duty along with interest, I hold that the penalty imposed on the appellant is unwarranted. Accordingly, I set aside the penalty imposed on the appellant. The impugned order is modified to this extent. Appeal disposed off - decided partly in favor of appellant.
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