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2018 (11) TMI 1227 - AT - Service TaxCENVAT Credit - construction of the Hotels - denial of credit on the ground that provision of services through the said Hotel was not possible till such time the construction of Hotel was not completed - Held that:- Hon’ble Andhra Pradesh High Court has held in the case of M/s Sai Sahmita Storages Pvt. Ltd. [2011 (2) TMI 400 - ANDHRA PRADESH HIGH COURT] that Cenvat credit availed during the construction is admissible for discharge of service tax liability after such constructed structure is used for providing taxable service - demand do not sustain. Penalty imposed under Rule 15A of Cenvat Credit Rules also not sustainable. It is establish in the show cause notice that the service tax under the category of Intellectual Property Service to the tune of ₹ 9,72,352/- was paid before the issuance of show cause notice and interest was also paid. We find that revenue has failed to identify whether the interest paid was sufficient or short and therefore the confirmation of demand with interest on the same and penalty of ₹ 10,000/- is not sustainable. Abatement on Short Terms Accommodation Service, Restaurant Service, Mandap Keeper Service also remains allowed. Appeal allowed - decided in favor of appellant.
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