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2022 (11) TMI 1146 - AT - Service TaxCENVAT Credit of service tax paid - legal services - Nexus with output services - Works Contract Service - reverse charge mechanism - suppression of facts or not - demand with interest and also equal amount of penalty under Rule 15(3) of Cenvat Credit Rules read with Section 78 of the Finance Act - extended period of limitation - HELD THAT:- The transaction has been properly recorded in the books of accounts maintained in the normal course of business. The dispute has been raised by the Revenue on the basis of audit note, which is based on the transaction recorded in the books of accounts and vouchers maintained by the appellant. Thus, there is no case of any suppression or contumacious conduct, as the Court below itself has found that cenvat credit in respect of legal services has been rightly taken. Further taking of cenvat credit by the appellant seems to be available in view of the main clause of Rule 2(l) of Cenvat Credit Rule, which provides for taking cenvat credit for any input service used by the provider of output service in relation to rendering of output services - Admittedly, in the facts of the present case, appellant could not have rendered the output service of hotel, mandap keeper without construction of the cafe and banquet hall. Extended period of limitation - HELD THAT:- The appellant has taken cenvat credit following the precedent ruling of this Tribunal and High Court referred. In this view of the matter, the extended period of limitation is not available to Revenue. Appeal allowed - decided in favor of appellant.
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