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2018 (10) TMI 815 - AT - Central ExciseCENVAT Credit - input services - security services used in head office - security activities related to residential premises of its employees - denial on the ground of nexus - Held that:- The security service used/utilized by the appellant in its head office should be considered as an input service for the purpose of availment of the cenvat benefit - However, the disputed service utilized by the appellant for providing the security activities related to residential premises of its employees should not be considered as input service inasmuch as such service cannot be considered as used in relation to manufacture of the final product. Since such service has no nexus with the manufacturing activities undertaken by the appellant, it should not be eligible for the cenvat benefit. Demand of Interest - Held that:- Since the appellant had sufficient balance in its cenvat account, it cannot be said that there is loss of revenue to the Government exchequer and for that purpose, Revenue has to be compensated by way of charging interest. Thus, interest demand cannot be confirmed against the appellant. Penalty - Held that:- There is no element of fraud, collusion, suppression etc. on the part of the appellant in defrauding the Government revenue, by availing ineligible cenvat credit. Hence, imposition of penalty also is not proper and justified. Appeal allowed in part.
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