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2019 (1) TMI 1303 - CESTAT MUMBAICENVAT Credit - input services - services of personal insurance of employees - security agency services in respect of the guest house - Held that:- In view of the embargo created in the definition of input service, service tax paid on insurance service for insuring the employees should not be considered as input service for the appellant - credit cannot be allowed. Security service availed by the appellant for its guest house, which is located outside the factory - Held that:- There is no nexus between such disputed service with the output service provided by the appellant. Hence service tax paid on the security service should not be considered as input service for the purpose of availment of Cenvat benefit - Credit cannot be allowed. Demand of interest and penalty - irregularly availed CENVAT Credit, not utilized - Held that:- The irregularly availed Cenvat Credit had not been used/utilized by the appellant for payment of service tax on the output services provided by it. In absence of utilization of Cenvat Credit, it cannot be said that there is loss of revenue to the Government exchequer, which can be compensated by way of payment of interest. Further, the Cenvat Credit particulars availed by the appellant were reflected in the books of accounts, which were verified by department for confirming the adjudged demand - Since the appellant had not suppressed any material particulars with regard to availment of Cenvat benefit, the provisions of Rule 15 (3) read with sub-Section (1) of Section 78 of the Act cannot be invoked for imposition of penalty - Demand of interest and penalty do not sustain. Appeal allowed in part.
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