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2024 (3) TMI 918 - AT - Service TaxCENVAT Credit - common cenvat credit account for manufacture of dutiable goods as well as a provider of output services - non-maintenance of separate records - penalty - HELD THAT:- The assessee is a manufacturer of dutiable goods as well as a provider of output services and in the Cenvat Credit Rules, there is no provision to maintain a separate account for input/input services used for manufacturing activity and the separate account to be made for input or input services used for providing output services. There is a common cenvat credit account, which was used for payment of other duty or service tax. In that circumstances, the show-cause notice was not required to be issued as held by this Tribunal in the case of M/S. LARSEN & TOUBRO LIMITED VERSUS COMMISSIONER OF CGST & CX, BHUBANESWAR COMMISSIONERATE [2022 (10) TMI 1077 - CESTAT KOLKATA] wherein this Tribunal has held It has been held in numbers of cases that as far as the inputs or input services are availed on payment of duty and as long as they are capable of being used in the provision of Service Tax and manufacture of excisable goods, credit cannot be denied and that there is no requirement of oneto- one correlation. Penalty u/r 15 of the Cenvat Credit Rules, 2004 - HELD THAT:- As the demand is not sustainable, therefore, the question of imposition of penalty under Rule 15 of the Cenvat Credit Rules, 2004, does not arise. Thus, no demand is sustainable against the assessee. Accordingly, assessee’s appeal is allowed.
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