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2014 (7) TMI 745 - AT - Service TaxImposition of penalty - Credit utilized before making payment to vendors - Validity of Commissioner's order - Held that:- Commissioner’s order does not have one column which is very important and which has been the cause of the wrong conclusion by the Commissioner. This is the opening balance in respect of each month. Because of not taking opening balance into account, the CENVAT credit available at the end of each month for utilization has become incorrect and as a result in that particular month which is examined by the Commissioner, there is excess utilization of credit vis-a-vis availability. There was no excess utilization at all during the relevant period. Under these circumstances what has happened is only an accounting error by the appellant and that mistake has been rectified by them by paying the entire amount with interest and correcting their account suitably. Such being the position, since the entire amount has been paid before issue of show-cause notice and initiation of proceedings, the appellant need not be visited with penalty also. - penalty can be waived by invoking provisions of Section 80 of Finance Act 1994 also. - Decided in favour of assessee.
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