TMI Blog2017 (7) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... rror holding that CENVAT credit needs to be rejected. CENVAT credit - insurance for vehicles - Held that: - the CENVAT credit availed of ₹ 7,711/- on the insurance for the vehicles after 01.04.2011 is also to be held as ineligible CENVAT credit and the appellant is directed to reverse the same along with interest - appellant is required to discharge the amount of interest. Penalty - Held that: - Since the issue is of interpretation of the provisions of Rule 2 (l) of the CENVAT Credit Rules as to the availment of CENVAT credit on the various input services received by them, the penalty is not warranted. Appeal allowed - decided partly in favor of appellant. - Appeal No. ST/28505/2013 - Final Order No. A/30620/2017 - Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce providers in the case of vehicle maintenance (cars), club corporate membership, vehicle insurance and vehicle insurance and servicing has been explained by the appellant before the lower authorities that these vehicles were used for transportation of the staff from place of residence to the factory and vice-versa and also that these vehicles are used by Directors and Managing Directors to travel from residence to the factory premises and all these vehicles were owned and registered in the name of the appellant. As regards club services, it was the claim before the lower authorities that the appellant had taken a corporate membership of Nizam Club in order to entertain their clients and also to hold business meetings and sales meetings wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us vehicles and the insurance thereof under clause B(A). Accordingly, the CENVAT credit availed of ₹ 7,711/- on the insurance for the vehicles after 01.04.2011 is also to be held as ineligible CENVAT credit and the appellant is directed to reverse the same along with interest. It was informed that the said amount was already reversed, hence appellant is required to discharge the amount of interest. 9. Since the issue is of interpretation of the provisions of Rule 2 (l ) of the CENVAT Credit Rules as to the availment of CENVAT credit on the various input services received by them, I find that penalty is not warranted. 10. Appeal is disposed of as indicated above. ( Order dictated pronounced in open court ) - - TaxTMI - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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