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2015 (1) TMI 1092 - CESTAT BANGALORECENVAT Credit - excess utilization of credit more than 20% - Cargo handling service - Imposition of penalty - Held that:- In the absence of detailed information regarding the amount payable every month, the credit available every month, the amount of services provided in DTA, non-taxable services, etc., no conclusion can be reached and no details have been made available in the appeal memorandum. Nevertheless, the one claim made by the learned counsel appears to be a reasonable proposition. The learned counsel submitted that at best the appellants can be said to be liable to pay interest for the amount which was paid from Cenvat credit amount instead of making payment in cash to discharge their service tax liability. - The stand taken by the department which in our opinion is legally correct, would result in a situation where the appellants have to deposit the entire amount of service tax utilized in excess of 20% but they can take back the credit into their account and utilize the same for subsequent period. That being the position, obviously if we require the appellant to pay interest on the excess utilization, it would reduce the complications involved in making payment in cash and taking back the Cenvat credit thereafter and would reduce work for all concerned. In Solar Chemferts Pvt. Ltd. case reported in [2011 (6) TMI 640 - CESTAT, MUMBAI], this Tribunal took a similar view in respect of the contravention of Rule 8(3) of Central Excise Rules. In our opinion, it would be appropriate to follow the same in this case also. Appellants are directed to calculate the amount payable as interest because of excess utilization of credit and make payments of the same. At present, the requirement of pre-deposit in excess of the interest payable is waived and stay against recovery is granted till the directions hereinabove are complied with and a final order about finalizing the stay application is passed by this Tribunal. - Decided partly in favour of assessee.
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