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2016 (11) TMI 827 - CESTAT CHENNAIDenial of service tax credit - “input services” under Rule 2 (l) of CCR, 2004 - services relating to medical treatment for employees in private hospital, construction, painting and cleaning and supply of purified water to employees’ quarters - Held that: - Since the appellants are not contesting the demand for the period post 1.4.2011 and, accordingly, the demand of ₹ 32,322/- and appropriate interest is confirmed. As regards penalty, I find that appellants have acted in a bonafide manner and there is no malafide intention to evade payment of tax, and therefore penalty is not imposable in the facts and circumstances of this case. Accordingly, penalty is set aside in respect of the which is not disputed, subject to payment of interest by the appellants. As regards the demand for the period prior to 1.4.2011 - Held that: - I hold that the appellants are entitled to service tax credit availed on the services relating to the business of the appellants. Demand is accordingly set aside to the extent of ₹ 56,832/-. Since the demand itself is set aside to the extent indicated above, there is no question of levying interest and imposing penalty. Appeal allowed - decided partly in favor of appellant.
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