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2019 (6) TMI 795 - AT - Service TaxRecovery of Refund already allowed with interest and penalty - Excess utilisation of CENVAT credit on Service Tax beyond the limit of 20% - extended period of limitation - HELD THAT:- In the instance case Appellants had utilised the CENVAT credit on the tax paid on the services extended by it which was subsequently held by the Hon’ble High Court not included in the category of the definition of services as prevailing them and the activities carried out by the Appellant was not tobe equated with mining service which was included in the taxable entry w.e.f. 1-6-2007 - Going by the Order-in-Original of refund application number ST/58/11 it can very well be noticed that documents of the Appellant including copies of ST-3 returns for the relevant period April to September 2007 along with ST-2, Invoice reflecting amount of Service Tax charged, Service Tax paid through CENVAT credit were produced before him and he analysed/ scrutinised the same and allowed the refund claim of the Appellant partly as well as refused a part of it on the basis of his assessment and analyse of claim of the refund. Extended period of limitation - HELD THAT:- Putting the Appellant under notice that it had wilfully suppressed the fact of excess utilisation of CENVAT credit way back in 2007 would bring an inference that Appellant had knowledge of such order to go in its favour in 2010, appears illogical and beyond once’s comprehension. Therefore, invocation of extended period in making duty demand against utilisation of CENVAT credit which had become excessive subsequent to such payment is irrational, contrary to the law and without any legal basis - in the instant case, when no suppression etc. is made out, extended period is not invocable and therefore interest on duty cann’t also be enforced. Appeal allowed - decided in favor of appellant.
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