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2019 (9) TMI 1139 - AT - Central ExciseCENV AT credit - input services - Catering Services attributable to EOU by the appellant DTA - proportionate reversal of Cenvat Credits on recovery made from the employees towards such Canteen/Catering Services - HELD THAT:- It is the settled principle of law that service tax paid on catering and house-keeping services are eligible input credits before negative list came into force, for which both in order-in-appeal and order-in-original, the credits were held to be admissible. Cursory reading of Sub Rule 4 of Rule 12 A would indicate that Cenvat Credit available with one of registered manufactured premises can be used by other such registered manufactured premises and if the transfer is done from the premises providing taxable service, the other registered premises should also be providing taxable service and not vice versa, which is applied by the authorities below and argued by Learned Authorised Representative - thus there is no hesitation to say that the credit attributable to the EOU could be taken and utilised by the appellant DTA. CENVAT Credit - recovery made from employees towards canteen service - HELD THAT:- Such availment of credit is not admissible - issue decided in the case of CCE, NAGPUR VERSUS ULTRATECH CEMENT LTD., [2010 (10) TMI 13 - BOMBAY HIGH COURT]. Extended period of limitation - Penalty - HELD THAT:- Considering the unsettled position of law on the issue of admissibility and inadmissibility of credits on catering and house-keeping services, extended period cannot be invoked but since the 2nd show cause notice is confined to the normal period and even show cause notice does not indicate malafide intention on the part of the appellant to avail ineligible credit, confirmation of penalty u/s 78 by the Commissioner (Appeals) cannot be said to be in accordance with the provisions of the Rule. Appeal allowed in part.
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