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2017 (8) TMI 1230 - AT - Service TaxSite Formation Services - abatement under N/N. 1/2006-ST - denial of notification on the ground that appellant have availed the Cenvat credit in respect of capital goods - Held that: - the appellant have prima facie discharged the entire service tax liability as applicable in accordance with. law. Ld. Commissioner has not carefully perused contract document and billing made by the appellant in respect of site formation service and construction service - matter needs to be re-considered in the light of actual fact available on record. As regard the abatment notification, appellant have admittedly not availed Cenvat credit either in respect of input or input service. The show cause notice alleges that they have availed credit in respect of capital goods, therefore Notification No.1/2006-ST is not available to them. The allegation prima facie incorrect as there is no restriction in availing Cenvat credit on capital goods in order to avail exemption N/N. 1/2006-ST or under works contract composition scheme, therefore appellant not violated any condition, hence the abatment availed by them is correct and legal. 100% CENVAT credit availed on capital goods - Held that: - as per the provision, the appellant was supposed to take credit of Cenvat credit of only 50%, however in the subsequent financial year remaining 50% credit was available - In the present case Cenvat credit of 50% was wrongly availed from date of taking credit till first day of subsequent financial year, therefore during such period appellant is liable to pay interest. Appeal allowed by way of remand.
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