TaxTMI 
TaxTMI 
2015 (6) TMI 826
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.... India Limited (SHCIL in short), renders custodial and depository services under the category of "Banking & Financial Services" and is registered with the Service Tax department, holding Service Tax Registration for due discharge of service tax. During the period under consideration i.e. 2003-04, 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09, the Appellant had consumed among others the following input services and claimed input tax credit of such input services under the CENVAT Credit Rules, 2004:- a. Insurance Services b. Club Membership Services c. Residential Telephone Connections d. Outdoor Catering Services e. Cable Operator Services 2.1 For the periods prior to 10.09.2004, the service tax returns consisted of an Ann....
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....6,01,945 Club Membership 1,80,922 0 1,80,922 Residential Telephone Connections 0 21,559 21,559 Outdoor Catering 7,45,935 0 7,45,935 Cable Operators Services 0 1,166 1,166 Total 1,27,13,850 18,37,677 1,45,51,527 2.3 Further, as is evident from above, the total of disallowed CENVAT Credit comes to Rs. 18,37,677/- whereas the Order-in-Original wrongly mentioned the disallowances of CENVAT credit as Rs. 18,59,705/- and ordered recovery of the same with interest and penalty. The Ld. Commissioner disallowed the CENVAT credit on the following grounds that the input service utilized do not have any nexus with the output service provided by the Appellants. Further the Appellant....
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....ted that the CENVAT Credit of Rs. 18,37,677/- be allowed to them. The Appellants submitted that OIO disallowed the CENVAT Credit of Special Contingency Policy (which pertained to insure against the infedility and forgery of securities, etc). The relevant policy papers were submitted at the time of hearing. The said insurance policy had a direct nexus with the output services provided by the Appellants and hence, they prayed that the CENVAT Credit of Rs. 18,14,952/- be allowed to them. 3.3 The Appellants also submitted that the CENVAT Credit of residential telephone connections pertained to those senior employees who were required to respond to the top management and clients even during sick leaves, holidays or even during non-office hour....
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....al of disallowances amounted to Rs. 18,37,677/- whereas the Ld. Commissioner mentioned the amount of disallowance as Rs. 18,59,705/-; which is an excess disallowances of Rs. 22,028/- for no reason. 3.5 The Appellants submitted that the penalty u/s. 77 cannot be levied as the same is traversing beyond the scope of the show cause notice even on merits, same is not attracted. The Appellants also submitted that the penalty u/s. 78 cannot be levied as no mens rea or contumacious conduct established by the department. Also, all the transactions were recorded in the books of accounts of the Appellants and hence, there is no suppression on the part of the Appellants. Considering the same, the extended period of limitation cannot be invoked and t....