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2019 (1) TMI 814 - AT - Central ExciseCENVAT Credit - reversal of credit with penalty - requirement to issue SCN imposing penalty - sub-section (6) of Section 11(A) of CEA - input services - environment and pollution control - tour operator and architect - design engineering services - Held that:- It is an admitted fact on record that out of the CENVAT demand of ₹ 14,62,89/-, the appellant had reversed ₹ 8,68,069/- and the said amount had also been appropriated in the adjudication order. Further, as per the requirement of Section 11A(6) of the Act, the appellant also paid penalty @ 1% of the amount of CENVAT credit reversed by it. Since the appellant had already paid the penalty as per the mandate of sub-section (6) of Section 11(A), there was no requirement of issuance of any show cause notice with regard to the amount of CENVAT credit reversed by the appellant - penalty set aside. CENVAT Credit - input services - environment and pollution control service - Held that:- Tribunal in the case of ESAB India Ltd. [] has extended the CENVAT benefit on such service, holding that prevention of pollution within the factory premises is a statutory requirement and credit of service tax paid on such service should be available to the manufacturer - credit allowed. CENVAT Credit - input services - Tour Operator Service - Held that:- The impugned order that such service was availed by the appellant for sending its dealers to outside country on pleasure trip. Since such service is not specifically finding place in the definition of 'input service' under Rule 2(1) ibid, denial of CENVAT credit benefit on Tour Operator Service by the authorities below, is proper and justified - credit not allowed. CENVAT Credit - input services - architect service - Held that:- Architect service has been specifically defined under the Finance Act and works contract/construction service have also been separately defined therein. Since architect service is distinct service and such service is not specifically included in the exclusion part of the definition of 'input service', denial of CENVAT credit on such service is not legal and proper - credit allowed. Appeal allowed in part.
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