TaxTMI 
TaxTMI 
2011 (2) TMI 329
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....n of residential complexes, repair and maintenance, man-power recruitment service, cleaning services, all in respect of their residential colony and took cenvat credit of the service tax paid in respect of the same. The department was of the view that the respondent are not eligible for service tax credit in respect of these services, as the same are not their input services for the reason that the same have been availed in respect of the residential colony and, hence, they are not the services used in respect of manufacture and, hence, not covered by definition of Rule 2(l) of the Cenvat Credit Rules. It is on this basis that the two show-cause notices dated 17-9-2007 for the period from 16-6-2005 to November, 2006 and the other show cause....
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....d that the judgment of the Tribunal in the case of Manikgarh Cement (supra) relied upon by the Commissioner (Appeals) has been reversed by the Hon'ble Bombay High Court vide judgment in the case of CCE v. Manikgarh Cement [2010] 29 STT 230, wherein Hon'ble Bombay High Court relying upon the Apex Court judgment in the case of Maruti Suzuki Ltd. v. CCE 2009 (240) ELT 641/22 STT 54 held that the services, in question, used in respect of residential colony of the respondents have no nexus with the manufacture of the final products and hence, are not eligible for cenvat credit, that in view of the judgment of the Hon'ble Bombay High Court, impugned order-in-appeal permitting the cenvat credit are not sustainable, that the Asstt. Commissioner in ....
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....credit in question under bona fide belief that the same was admissible, no mala fide in this regard can be attached and, hence, neither longer limitation period would be available nor penalty under Rule 15(2) of Cenvat Credit Rules, 2004 read with section 11AC of the Central Excise Rules would be attracted, that the Tribunal in the case of Manikgarh Cement Works (supra) while denying the cenvat credit in respect of the services availed in the residential colony had set aside the penalty observing that in a case of this nature, the assessee should not be penalized as the case involves rival interpretations of a provision of law and in typical cases of interpretative nature, penalties have been waived by this Tribunal and that in view of this....
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....es read with section 11AC would be attracted, there is no discussion as to how the conditions for invoking extended period under proviso to section 11A(1) of Central Excise Act, 1944 and the conditions for imposition of penalty under section 11AC are satisfied. Therefore, in respect of this appeal, the issue of invoking extended period and imposition of penalty has to be remanded to the original adjudicating authority for de novo decision. However, it is clarified that even if penalty under Rule 15(2) of the Cenvat Credit Rules, 2004, read with section 11AC, of the Central Excise Act is not imposable, for wrong availment of cenvat credit, the penalty under Rule 15(1) of the Rules would be attracted. 6. In view of the above discussion, wh....