2016 (12) TMI 584

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....ne Collection Centre). 2. The brief facts are that during the course of audit it was noticed that during April 2010 the appellant had taken input credit of service tax on security service provided at Cane Collection Centers, which was situated outside the factory premises and as such it appeared that these could not be considered as input services, accordingly show cause notice dated 16/1/2012 was issued invoking extended period of limitation, proposing to disallow service tax - Cenvat credit amounting to Rs. 2,80,459/- along with interest and further penalty was proposed under Rule 15 of Cenvat Credit Rules, 2004 read with section 11 AC of the Central Excise Act 1944. The appellant appeared and contested the show cause notice stating th....

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....under the definition of the input service: On the face of these facts, I am of the view that the cenvat credit in respect of the service tax paid on ü Security Service" at cane collection centre are not covered under the definition of the "input service" under rule 2(Y) of the Cenvat Credit Rules, 2004, Therefore, they were not entitled for such cenvat credit and I hold the same accordingly. As regards to the imposition of penalty under Rule 15 of the Cenvat Credit Rules, 2004 read with Section 11AC of Central Excise Act, 1944. I find that the issue is related to the interpretation of the statutes relating to the availment of cenvat credit on input service, in the impugned order, nothing is on the record to establish malafide on the....