2018 (7) TMI 1600

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....of the appellant is situated in Mumbai, whereas the Operational Accounting Office of the appellant is situated in Kolkata. During the audit and scrutiny of the records and returns filed by the appellant for the periods 2011-12 and 2012-13, the department observed that the appellant had taken CENVAT Credit on services such as rent-a-cab service, health insurance service and interior decorator service which allegedly had no relation to the final product or output service of the appellant. It was further observed that the appellant had taken credit of Rs. 13,67,508/- on IT services and Rs. 15,656/- on Commercial Coaching and Training service on the basis of bills issued to M/s Lafarge India Ltd., Mumbai and therefore, the department concluded ....

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....lkata for payment. He also contested the invocation of extended period of limitation by the adjudicating authority. 3. The ld. AR for the Revenue reiterated the findings of the lower authorities. 4. Heard both sides and perused the appeal records. 5. On perusal of records, I find that the appellant had accepted that CENVAT Credit availed on services such as rent-a-cab service, health care service and interior decorator service were ineligible to be availed as CENVAT Credit. The Ld. Representative contended that due to the logistical convenience of the service providers, they addressed and submitted the invoices in the Mumbai office. As stated by the appellant, when the Purchase Orders were issued from the Kolkata office, the invoic....

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.... In my considered view, the cenvat invoices should be verified and the matter should be decided accordingly. So far as penalty under section 78 of the Finance Act is concerned, the observation of the Hon'ble Gujarat High Court at Ahmedabad in Commissioner of Central Excise vs. Dashion Ltd. [2016 (41) S.T.R. 884(Guj.)] has observed as under: "8. Coming to the question of penalty, right from the show cause notice stage till the final disposal of the show cause notice proceedings, we find little evidence to support the allegations of willful misstatement, suppression, fraud or collusion on the part of the assessee. In fact, perusal of the show cause notice would show that the entire basis of the Revenue was wrongfully availment of the credi....