2014 (7) TMI 580

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..... M. S. Nagaraja, Advocate For the Respondent : Mr. N. Jagdish, Superintendent (AR) JUDGEMENT Per : B.S.V. Murthy; During the course of audit of the accounts of the appellant ranging for the period from 08/2009 to 09/2010 the internal audit party observed that the appellant have taken service tax credit of their another unit namely Unit-III located at Nacharam in respect of the service....

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....d therefore, the procedure followed by them was correct. Further, he also submits that credit was taken during the period from April 2008 to March 2009 whereas the show-cause notice was issued on 30.8.2011. In the absence of any motive or intention to suppress or misdeclaration on the part of the assessee to evade payment of tax to avail CENVAT credit wrongly, extended period should not have been ....

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.... made by both sides. We find considerable force in the arguments advanced by the learned counsel. The registered office and Vatva office both are located in the same place and appellant has simply utilized the credit at Vatva instead of distributing it to various units. As submitted by the learned counsel, during the relevant period, there was no restriction for utilization of such credit without ....

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....ved during the relevant time and in the light of the decision cited by the learned counsel, the procedural irregularity has to be ignored and the demand confirmed has to be set aside on this ground. In the result, demand for Cenvat credit of Rs. 1,07,07,142/- with interest and penalty equal to the same imposed under Section 11AC of Central Excise Act, 1944 are set aside. 4.1 As regards decisio....