2016 (9) TMI 87

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....involved in the present case is that the appellant availed Cenvat Credit in respect of construction services for the construction of guest house, staff quarters, flooring work at colony, septic tank of security barracks, club house, bank building, hawankund shed, temple etc. Show cause notice was issued proposing disallowance of Cenvat Credit on the said construction services on the allegation that these services are not in relation to manufacture of final product. The adjudicating authority vide Order-in-Original No. 16/LTU/2010/ADC/VMJ dated 19/03/2010 confirmed the demand of Cenvat Credit amounting to Rs. 17,78,562/-, imposed penalty of equal amount under Section 11AC and also ordered for recovery of interest under Section 11AB of the Ce....

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....sue involved is purely of interpretation of law. At the same time, regarding the demand of Cenvat Credit held that there us a suppression of fact. He emphatically submit that it is factually incorrect observation of both the lower authorities that the appellant have not submitted the details of construction service on which credit was availed. He submits that along with their monthly ER-1 Return therefore regularly submitting the copies of cenvatable invoices. In this regard, Ld. Chartered Accountant taken me to the copies of the covering letter of the monthly ER-1 Return for the period 2005 to 2007. He submits that as per the submission of all the invoice copies on which cenvat credit was availed, the entire facts of availment of cenvat cr....

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....d. Vs. Commissioner of Central Excise, Salem 2012 (285) E.L.T. 292 (Tri.-Chennai) (vi) Singh Brothers Vs. Commissioner of Cus. & C. Ex. Indore 2009 (14) S.T.R. 552 (Tri.-Del.) (vii) ITW India Ltd.Vs. Commissioner of Central Excise, Hyderabad 2009 (14) S.T.R. 826 (Tri.-Bang.) (viii) South City Motors Ltd. Vs. Commissioner of Service Tax, Delhi 2012 (25) S.T.R. 483 (Tri.-Del.) (ix) Power Grid Corporation of India Ltd. Vs. Commr. of S.T., New Delhi 2011 (24) S.T.R.307 (Tri.-Del.) (x) Rochem Separation Systems (India) Pvt. Ltd. Vs. Commr. of S.T. Mumbai-I 2015 (39) S.T.R.112 (Tri.-Mumbai) He submits that all the services involved herein are the construction of various building within the factory p....

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....cise, Jaipur-II 2011 (270) E.L.T. 111 (Tri.-Del.) (iv) Infosys Ltd. Vs. Commissioner of Service Tax, Bangalore 2015 (37) S.T.R. 862 (Tri.-Bang.) (v) Vikram Cement Vs. Commissioner of Central Excise, Indore 2009 (242) E.L.T. 545 (Tri-.Del.) (vi) Commissioner of C.Ex. & Customs Vs. Gujarat Heavy Chemicals Ltd. 2011 (22) S.T.R. 610 (Guj.) He further submits that there is a suppression of fact on the part of the appellant as the use of construction service was not declared by the appellant. Therefore both the lower authority have rightly held that there is a suppression of fact on the part of the appellant hence, the extended period was rightly invoked. He placed reliance on the judgments: (i) Commr. of C.....

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....hat the ld. Commissioner (Appeals) in his finding for dropping the penalty stated as under : 9. Regarding imposition of penalty, the appellant contend that as it is purely a matter of interpretation. In this matter I observe that there are various contradictory judgments of Tribunals on the similar issue and Cenvat credit on services received in residential complex/colony is allowed in number of cases by Tribunal. It is purely a matter of interpretation of statute and hence no penalty is imposable in the instant case. From the above finding, the Ld. Commissioner (Appeals) admitted that on the issue of Cenvat Credit on construction services, there were contradictory judgments and the issue involved is purely the matter of interpr....