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2019 (5) TMI 154 - AT - Service TaxRefund claim - whether provision of output services are necessary for entitlement of CENVAT credit under CENVAT Credit Rules 2004 (whether such output services are exported or rendered domestically)? - Rule 3 of CENVAT Credit Rules 2004 - HELD THAT:- Rule 3 of CENVAT Credit Rules 2004 is the only basis for anyone taking CENVAT credit. This rule provides for CENVAT credit to a manufacturer or a provider of output services of the tax/duty paid on inputs or capital goods or input services received by the manufacturer or provider of output services. In other words, the provision of output services is an essential requirement for entitlement to CENVAT credit under Rule 3 of CENVAT Credit Rules 2004. Whether there is sufficient evidence to show that the output services were rendered by the appellant from the seven new premises during the relevant period? - HELD THAT:- On a specific question from the Bench if the invoices listed as “other Non-STPI locations” could be matched with the corresponding invoice numbers and the address of the premises where the services were provided, Learned Counsel replied in negative. Therefore, merely based on the assertions of the Learned Counsel, I find it impossible to come to any conclusion that the statement given by the appellant established that the services from these seven premises - there is not even a casual remark or mention in any of these invoices that the services were rendered from any of the seven disputed premises. In the absence of any evidence whatsoever, I am unable to come to a conclusion with these invoices that output services were rendered from any of the seven disputed premises. Extended period of limitation - penalty - HELD THAT:- It was incumbent upon the appellant to ensure that they take credit as per the rules and not in violation of them. I do not find that the appellant had any reason to believe that they would have been entitled to CENVAT credit on the input services when they have not even kept a record of having rendered any output services from these seven premises - the SCN demanding the recovery of the CENVAT credit along with interest invoking extended period of limitation and proposing imposition of penalty under Section 78 was correctly issued. Appeal dismissed - decided against appellant.
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