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2019 (12) TMI 555 - CESTAT HYDERABADCENVAT Credit - Capital goods - motor vehicles - appellant had rendered only service of clearing and forwarding agent - bundled services - recovery u/r 14 of CENVAT Credit Rules 2004 read with proviso to Section 73(1) of Finance Act 1994 - HELD THAT:- Clearing and forwarding agency service was clearly not covered under Rule 2(a)(B). Rule 2(a)(B) of CENVAT Credit Rules 2004 did not permit CENVAT credit used for cargo handling, transportation etc. but specifically for rendering some services classifiable under some sub-clauses of Section 65(105). The services which are rendered often involve more than one type of activities. In such cases, the service should be classified as that service which gives its essential character. There is no provision in this Section or under any other provision to classify the same service under more than one head for different purposes such as one head for paying service tax and another to claim CENVAT credit. Undisputedly the appellant has only rendered clearing and forwarding services which does not entitle them to CENVAT credit on the motor vehicles in view of the specific exclusion in CENVAT Credit Rules 2004 - thus, the appellant has wrongly availed CENVAT Credit. Extended period of limitation - penalty - HELD THAT:- There are no reason for the appellant to have availed CENVAT credit when they were not rendering services which would entitle them to such credit. This is a clear violation of the provisions of the rules with an intent to evade irregularly availed CENVAT credit and to that extent evade payment of service tax - the invocation of extended period of limitation as well as imposition of penalty justified. Appeal dismissed - decided against appellant.
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