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TMI Blog2018 (11) TMI 1376X X X X Extracts X X X X X X X X Extracts X X X X ..... ch, 2016 and a show cause notice dated 23.05.2017 was issued to the appellant for recovery of credit of Rs. 1,71,944/- along with interest and it was also proposed to impose penalty. This denial was on five grounds. The lower authority confirmed the demands and interest and imposed penalty. On appeal, the first appellate authority allowed the credit on one ground amounting to Rs. 20,400/- which was denied by the lower authority on the ground that the duty involved is not indicated in the relevant invoices. The department has not appealed against this credit allowed by the first appellate authority and hence this issue has reached finality. Learned counsel submits that they are not contesting denial on another ground, viz., the denial of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it on the condition that they do not avail CENVAT Credit of duty on inputs. In this case the credit was taken as input services and not on inputs. He asserts that there is nothing in the Notification No. 08/20013 which will disentitle them to the benefit of the credit of input services. He prayed that their appeal may be allowed and the impugned order may be set aside to the extent credit by them. 3. Learned departmental representative submits that insofar as the denial of credit of Rs. 28,523/- is concerned, it is wrong to say that they have been denied credit only on the ground that invoice mentions the address of the corporate office. He explains that they have been denied credit on those services because there is nothing on record to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that ground. Learned departmental representative draws my attention to the relevant portions of the Order-in-Original which are as follows. "11(1)(a) Wrong availment of CENVAT Credit on input services addressed to another unit during the period 2014-15 & 2015-16: I have perused the relevant invoices involving credit of Rs. 25,523/-. On perusal of the same it is observed that M/s MPower Softcomm Pvt Ltd, D-8, Infocity-2, Sector-33, Gurgaon, Haryana and M/s Citycom Networks (Spectranet) Pvt Ltd, Plot No.21-22, Third Floor, Phase-4, Gurgaon, Haryana-122015 have issued invoices to M/s Link Autotech Pvt Ltd, C-61, Mayapuri Industrial Area, Phase-II, New Delhi-110 064 in respect of providing online information and database access services. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fferent from a case where the use of inputs/ input services is not in dispute and only the invoice indicates a wrong address but such is not the case. The case laws relied upon by the learned counsel do not carry the appellant's case any further in view of this factual finding. 6. Insofar as the denial of credit of Rs. 73,571/- input services is concerned, the show cause notice calls upon the appellant to explain as to why "an amount of Rs. 73,571/- being the CENVAT credit availed during the period from April, 2014 to October, 2014 in contravention of the provisions of the Notification No.8/2003-CE dated 01.03.2003" should not be denied and recovered. This demand was confirmed in the Order-in-Original on this ground alone as below: "11(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is irregular and recoverable along with interest, as per Rule 14 of Cenvat Credit Rules, 2014." 7. The first appellate authority, however, upheld the confirmation of the demand by invoking Rule 11 of CENVAT Credit Rules, 2004 [Transitional Provisions] which was not invoked in the show cause notice and thereby travelled beyond the show cause notice which is not sustainable. As far as the exemption under Notification No.8/2003-CE is concerned, Para 2 (iii) clearly lays down the condition that no credit of CENVAT on inputs shall be availed. It places no such restriction on credit of "input services", which is the point in dispute. Therefore, the demand raised seeking to deny credit on input services because they availed benefit of Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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