HIGH COURT OF JUDICATURE FOR RAJASTHAN AT
D.B. Central Excise Appeal No. 4 / 2016
Union of India through the Commissioner,
Central Excise & Service
Tax, 142-B, Hiran Magri, Sector-11, Udaipur.
M/s Shree Alloys Industries Pvt. Ltd. (Unit-II), Plot No.SP 3B/4/5,
Swaroop Ganj, RIICO Industrial Estate, Bhilwara (Raj.).
For Appellant(s) : Mr.Kuldeep Vaishnav
HON'BLE THE CHIEF JUSTICE
HON'BLE MR. JUSTICE VINIT KUMAR MATHUR
1. Prolix appeal spanning 43 pages has been considered by us. Challenge is to the order dated 27.4.2015 passed by the CESTAT.
2. Two issues concerning penalty have been decided by the impugned order. The first pertained to cenvat credit in sum of 2,23,221/- on steel items which were used in ₹ construction of the factory. The second pertained to cenvat credit in sum of ₹1,93,972/- on construction services which were used for construction of labour colony.
3. The Tribunal noted that the assessee had reversed the cenvat credit pertaining to the factory premises alongwith interest and in that view of the matter held that penalty ought not to have been imposed.
4. Pertaining to the input service credit on construction services for the residential colony the Tribunal noted that there were conflicting views of the Bombay High Court and the Andhra Pradesh High Court. The Tribunal held that in that view of the matter it was of the opinion that the assessee was not entitled to avail input service credit on construction services of residential colony and to that extent upheld the demand with interest but on the issue of penalty held that in view of the legal position being unclear, penalty ought not to have been imposed.
5. We agree with the view taken by the CESTAT and thus no question of law arises for consideration in the instant appeal.
6. The appeal is dismissed.
(VINIT KUMAR MATHUR)J. (PRADEEP NANDRAJOG)CJ.