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2018 (10) TMI 819 - AT - Central ExciseCENVAT Credit - input services - courier service utilized for delivery of goods at the buyer’s premises - place of removal - demand of Interest and penalty - Held that:- The issue with regard to availment of Cenvat Credit on GTA/courier service for delivery of goods at the buyers premises is no more res integra, in view of judgment of Hon’ble Supreme Court in the case of Ultratech Cements Ltd [2018 (2) TMI 117 - SUPREME COURT OF INDIA], where it was held that Cenvat Credit on goods transport agency service availed for transport of goods from place of removal to buyer’s premises was not admissible to the respondent - credit rightly denied. Demand of Interest - Held that:- The appellant had sufficient balance in its Cenvat account during the disputed period. Thus, it is evident that the disputed credit had not been utilized by the appellant for payment of Central Excise duty on the final product cleared by it. Therefore, under the amended provisions of Rule 14 of the Cenvat Credit rules, 2004, since the credit has not been utilized, no interest shall be demanded from the appellant. Demand of Penalty - Held that:- It is not a case that taking of regular credit by the appellant is owing to the reason of fraud, collusion, suppression of facts etc., with intent to defraud the Government revenue. Since the appellant had availed the credit based on the earlier circular issued by the CBEC, it cannot be said that the appellant had indulged into the fraudulent activity - the provisions of Rule 15(2) of the rules read with Section 11 of the Act cannot be invoked for imposition penalty. The impugned order, so far as it denied the Cenvat benefit on courier service, sustains. Interest and penalty confirmed therein is set aside - Appeal allowed in part.
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