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2014 (8) TMI 896 - AT - Service TaxWaiver of pre deposit - CENVAT Credit - Availment on SIM cards - credit has been denied on the ground that SIM Cards are capital goods classifiable under Chapter CETH 85 - Held that:- appellants purchase the SIM Cards, load the software and thereafter sell it through the dealers and after sale to a customer, the SIM Card is activated and the process of provision of Telecommunication service commences. That being the position, the claim of the appellant that SIM Card is an input for them and is used for providing the output service on a prima facie basis seems to be justifiable. Therefore I consider that the appellant has made out a prima facie case in respect of the amount of ₹ 3,25,168/- and therefore the requirement of pre-deposit of this amount has to be waived. Demand of interest on reversal of cenvat credit - Held that:- From the reading of Section 75 there is no requirement of determination of the amount to be demanded for demanding interest. In any case in this case there is no dispute as regards the amount of credit wrongly taken and it is a fact that by the time department found out about wrong availment, the appellant had become eligible for the credit from 1-4-2008. That being the position, the a claim that duty should have been quantified and demanded (in this case wrongly availed credit) becomes only a technical formality and there is no clear requirement under Section 75 that such a technical formality should be completed for demanding any interest. If this claim is allowed, the provisions of Rule 14 which requires interest to be paid where credit has been wrongly availed becomes meaningless and no interpretation can be given to the law which will defeat the purpose of any of the provisions of the law. appellant has not been able to make out a case for complete waiver - Partial stay granted.
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