TMI Blog2018 (7) TMI 1673X X X X Extracts X X X X X X X X Extracts X X X X ..... quarely covered by the decision in the case of Vodafone Essar South Ltd. vs. Commissioner of Service Tax [2018 (4) TMI 226 - CESTAT BANGALORE], where it was held that various Benches of the Tribunal have held that the appellants are not entitled to take CENVAT credit on tower / tower materials and prefabricated buildings/shelters as capital goods as well as inputs - demand upheld. Penalty - Held that:- The appellants are government undertaking and the issue in the present appeals is in the nature of interpretation of eligibility of CENVAT credit or otherwise - Penalty set aside by invoking section 80. Appeal allowed in part. - ST/956/2010-DB & ST/957/2010-DB - - - Dated:- 24-7-2018 - HON'BLE MR. S.S GARG, JUDICIAL MEMBER And HO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds apart from the goods which are directly used in the manufacture of finished goods. The words and expression in or in relation to‟ or directly or indirectly‟ gave an enlarged scope to the definition of the word inputs‟ in the first part of the definition, which is applicable only to the manufacturing activity. Whereas, as per the second part of the definition, which is application for service provider, the inputs‟ means all goods used for providing output services. Here in the second part of the definition, the words and expressions in or in relation to‟ or directly or indirectly‟ are not present. In the absence of such expression, one cannot give an enlarged connotation to the second part of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent from the ones where such credit has been held ineligible for the telecom operators. 2.1 On the issue of levy of penalty, the learned counsel has submitted that as per the ratio of the following cases, penalty cannot be imposed on the appellants as this is an issue pertaining to interpretation of words in the statute. The Tribunal in such cases has also set aside the penalty in case of demands within the period of limitation. Vodafone Essar South Ltd. vs. Commissioner of Service Tax: 2018 (4) TMI 226 CESTAT Bangalore. M/s. Bharat Sanchar Nigam Ltd. vs. CCE: 2017 (2) TMI 439 CESTAT Hyderabad M/s. Bharat Sanchar Nigam Ltd. vs. CST, Chennai: 2018 (4) TMI 1108 CESTAT Chennai M/s. Fascel Ltd. Others vs. CST, Ahme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the like, and parts thereof falling under heading 6804) of the First Schedule to the Excise Tariff Act; (ii) Pollution control equipment; (iii) components, spares and accessories of the goods specified at (i) and (ii); (iv) moulds and dies, jigs and fixtures; (v) refractories and refractory materials; (vi) tubes and pipes and fittings thereof; and (vii) storage tank, used (1) in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office; or (2) for providing output service. (emphasis supplied) Rule 2(k) defines input as under :- 2(k) input means (i) all goods, except light diesel oil, high speed diese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act; (ii) the duty of excise specified in the Second Schedule to the Excise Tariff Act, leviable under the Excise Act; (iii) the additional duty of excise leviable under Section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978); (iv) the additional duty of excise leviable under Section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957); (v) the National Calamity Contingent duty leviable under Section 136 of the Finance Act, 2001 (14 of 2001); (vi) the Education Cess on excisable goods leviable under Section 91 read with Section 93 of the Finance (No. 2) Act, 2004 (23 of 2004); (via) the Secondary and Higher Education Cess on excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production; and all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any out service. Explanation 2 to the definition of inputs is relevant which includes goods used in the manufacture of capital goods which are further used in the factory of the manufacture. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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