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2016 (11) TMI 1128 - AT - Central ExciseCENVAT credit - services received and used in the guest house/farm house, away from the factory during the period from October 2010 to May 2011 - Held that: - providing of service at guest house which situated away from the factory premises cannot be considered to be an input service and eligible to CENVAT Credit in view of the judgment of Hon'ble Gujarat High Court in the case of CCE Vs Gujarat Heavy Chemicals Ltd [2011 (5) TMI 132 - GUJARAT HIGH COURT]. However, imposition of penalty equal to the CENVAT credit availed, under Rule 15(1) of CENVAT Credit Rules 2004 is too harsh. Accordingly, considering the circumstances and in the interest of justice the penalty is reduced to ₹ 50,000/- - appeal allowed - decided partly in favor of assessee.
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