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2020 (3) TMI 743 - AT - Service TaxCENVAT Credit - input services - professional charges - travelling expenses - allegation that the input services on which credit availed by them do not satisfy the definition of “input Services” prescribed under Rule 2(l) of Cenvat Credit Rules,2004 - period 2008-09 to 2012-13 - HELD THAT:- The appellants have provided ‘output services’ i.e., Sterlisation of Pharma and Food products for which they charged consultancy fees on process development and other aspects relating to the management of company, namely labour law, legal opinion etc. The issue of admissibility of credit on these services is covered by the judgement of Hon’ble High Court of Allahabad in the case of COMMISSIONER OF CENTRAL EXCISE VERSUS M/S. HCL TECHNOLOGIES [2014 (11) TMI 663 - ALLAHABAD HIGH COURT]. Hence the said service is an input services within the scope of definition prescribed under Rule 2(l) of CCR ,2004 and credit availed on such Input Services is admissible. Travelling expenses - HELD THAT:- The same are in relation to sales promotion and post sales related activities undertaken by the Appellant and also covered by the judgement of DR. REDDY’S LAB LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, HYDERABAD [2009 (9) TMI 287 - CESTAT, BANGALORE] - Hence, credit on such input services is also admissible. Penalty - HELD THAT:- The credit in relation to several other input services availed post 1.4.2011 on a bonafide belief but later the appellant had reversed the credit with interest, hence penalty is not warranted - Penalty set aside. Appeal allowed in part.
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