TMI Blog2018 (3) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hon’ble High Court of Punjab and Haryana held that the assessee is entitled to avail cenvat credit. Extended period of limitation - Held that: - As the show cause notice has been issued by invoking extended period of limitation, the extended period of limitation is not applicable. Appeal allowed in part. - Appeal No. ST/585/2012, E/996/2012 - Final Order No: 61786-61787 / 2018 - Dated:- 14-3-2018 - Mr. Ashok Jindal, Member (Judicial) And Mr. Anil G. Shakkarwar, Member (Technical) Shri. V.Gupta, AR- for the Revenue Shri. Naveen Bindal, Advocate- for the Assessee ORDER Per Ashok Jindal: Both sides are in appeal against the impugned order. 2. The facts of the case are that the appellant installed one plant a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement of any production or used those capital goods and allowed the cenvat credit to the tune of ₹ 1,37,24,346/-. The adjudicating authority denied the cenvat credit of ₹ 12,56,125/- on certain inputs used in fabrication of the capital goods but rest of the demand was dropped. The Revenue is in appeal against the order of the dropping the demand against the assessee and the assessee in appeal against the order of confirmation of demand and along with interest and imposing penalty. 3. Today, when the matter was called, the ld. Counsel appearing on behalf of the assessee submitted that the assessee has already paid the amount of duty along with interest, therefore, to buy peace, the assessee is not contesting the duty liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is that they are providing taxable service and in terms of Rule 2(k) the Cenvat Credit Rules, 2004, any capital goods or input used for providing taxable output service, they are entitled to avail cenvat credit. The Revenue has not disputed that they are provided taxable service, therefore, they are entitled to avail cenvat credit on the capital goods in question. The case of the Revenue is that in the light of the decision in the case of Surya Roshni Ltd. (Supra), they are not entitled to avail cenvat credit. We have gone through the decision of the Surya Roshni Ltd. (supra), the facts are distinguishable of the case of Surya Roshni Ltd. (Supra). In fact, in the case of Surya Roshni Ltd. (Supra), the capital goods were initially use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion were never to be used for any manufacturing activity but the said goods have been used for providing output taxable service. In that circumstances, we hold that the assessee is entitled to avail cenvat credit on the goods in question but as the assessee is not contesting their liability of ₹ 12,56,125/-, therefore, the said demand is confirmed along with interest. 8. As the show cause notice has been issued by invoking extended period of limitation, we hold that in the facts and circumstances of the case, the extended period of limitation is not applicable. 9. As issue has been decided on merits in favour of the assessee, therefore, no penalty is imposable on the assessee. In these terms, the appeal filed by the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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