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2021 (11) TMI 280 - AT - Service TaxUtilization of CENVAT Credit for payment of service tax - construction/works contract services - renting of immovable property services - period January, 2015 to September, 2015 - extended period of limitation - penalties - HELD THAT:- The Department never issued any show cause notice for disallowance of cenvat credit taken, which has been disclosed in the Returns filed before the Department and further, proper records were maintained. Further, it is found that once the credit has been taken in terms of Rule 3 of Cenvat Credit Rules. The same has been objected to by the Department under Rule 14 of Cenvat Credit Rules only on the utilisation of such credit for payment of output service tax, in accordance with Rule 3(4) (e) of Cenvat Credit Rules. It is further noticed that Rule 14 has been invoked only on the event of utilisation of accumulated cenvat credit. Extended period of limitation - Penalties - HELD THAT:- The appellant has rightly utilised this accumulated cenvat credit for payment of output service tax of ₹ 3,98,150/-, which has been objected to by the Revenue and further demand on this score is set aside - extended period of limitation is not attracted in the facts and circumstances as the issue being wholly of interpretation. Accordingly, penalties imposed under Rule 15 of CCR as well as under Section 78 of the Finance Act are set aside. Matter remanded to the adjudicating authority for verification and to allow, if found eligible - appeal allowed by way of remand.
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