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2018 (9) TMI 985 - AT - Service TaxCENVAT credit - inputs - Tower and Shelter Materials - time limitation - penalty - Held that:- The said issue stands decided in the decision of the High Court of Bombay in the case of Bharti Airtel Ltd, [2014 (9) TMI 38 - BOMBAY HIGH COURT] where it was held that the appellants are not eligible for such credit. However, the demand for the extended period as well as the penalties for the normal period is set aside - in the present case, the appellants had disclosed all the details as required by the Department as and when called for, apart from disclosing the credit availed in their ST-3 returns. It is also seen that they were under the bona fide belief that they are entitled to avail the credit of duty paid on tower and pre-fabricated building materials used for providing output service of telecommunication services - extended period and penalty not justified. CENVAT credit - SIM Cards - allegation of the Department is that since the appellants have sold the SIM Cards, the credit availed on such SIM Cards has to be reversed by them - Held that:- In the appellant’s own case, the demand for levy of VAT on the sale of SIM Cards was dropped by the Deputy Commissioner of Commercial Taxes by holding that the sale of SIM Cards is not goods sold or intended to be sold to the customer - credit availed by the appellants on SIM Cards is eligible and the demand for reversal cannot sustain. CENVAT Credit - various input services - Held that:- The definition of input services during the period prior to 01.04.2011 had a wide ambit as it included the words “activities relating to business”. Thus, all the services in the said table is held eligible (except subscription paid to club) - as regards, subscription paid to club, it is not established by the appellant as to why or how such services are related to the output services provided by them. The credit availed on subscription paid to club does not qualify as input service and therefore, the disallowance of credit on such service is upheld. CENVAT Credit of ₹ 58,60,300/- - dis-allowance for the reason that the appellants have not produced necessary documents and that the documents do not contain necessary details - Held that:- We cannot find any merit in the contention raised by the appellant without producing documents on which credit has been availed, and without furnishing necessary details of such documents so as to establish the credit availed, the appellant cannot contend that the credit is eligible - credit not allowed - However, the demand in respect of this amount which pertains to the extended period will require to be set aside. Appeal allowed in part.
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