HOTLINE CPT LTD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE service tax paid by the appellant as a recipient of photography service was claimed to be set off against excise duty liability and that has been denied by both the authorities below. Ld. Adjudicating authority found that the input service of photography claimed by the appellant was no way used in manufacture of colour picture tube for which he denied the input credit. While denying, he also came to the conclusion that photography of plants of the notices cannot be said to be used for advertisement purpose and the assessee cannot be entitled to the credit of service tax paid on such photography service. When the appellant came before the First Appellate Authority that authority by order dated 11.2.2008 at page 3 thereof considered the law and came to the conclusion that the photography of plants have neither direct, or indirect role in relation to manufacture of the picture tube by appellant. Accordingly, he confirmed adjudication. Appellant has same submission before the Tribunal without bringing dependability and integrity of the photography service to the manufacture for the purpose of claiming cenvat credit on the service tax paid on photography service. The show cause notice in terms of para 5 thereof brought out that notice had not used photography service in or in relation to manufacture/clearance of their final product. There was an opportunity for defence given by show cause notice. But the defence led could not get sanction of law.

(2.) LD . DR supported order of the authorities below.

(3.) THE ld. DR says that only for the wrong availment of credit, penalty of Rs. 10,000/ - was imposed. Hearing both sides, it transpires that there was a contravention of law when wrong credit was availed. But conduct of the appellant suggests maximum penalty need not be imposed. Accordingly, the penalty imposed under rule 15(3) of Cenvat Credit Rules, 2004 is reduced to Rs. 1000/ - only. Accordingly, appeal is partly allowed confirming adjudication but only reducing penalty to the aforesaid amount.