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2017 (3) TMI 1450 - AT - Central ExciseInput service credit - outdoor catering service provided by the canteen contractor to the employees - wilful suppression of facts - penalty - Held that: - there is a positive act on the part of the appellant as they went on collecting the charges from the employees and also availing the Cenvat Credit in respect of the same - The burden of taking Cenvat Credit properly has been cast on the assessee under CCR, 2004 and the same was not discharged properly. In such a situation, the extended period can be invoked. As for the penalty imposed on the appellants, the period involved in these SCN is from April, 2006 to March, 2008 and April, 2008 to December, 2008. The penalty has been proposed u/r 15 read with Section 11 AC in the first SCN and u/r 15(3) for second SCN. As rightly pointed out by the Ld. Advocate, Rule 15(1) and 15(2) ibid are not applicable in their case as the same pertain to inputs and capital goods. Rule 15 (4) of the credit Rules applies to provider or output services. Hence, the appellants are liable to penalty u/r 15 (3) of the CCR. Penalty is therefore, reduced to ₹ 4000/- i.e. ₹ 2000/- each. Appeal allowed - decided partly in favor of assessee.
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