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2015 (3) TMI 1127 - AT - Service TaxLiability to pay interest - non eligibility of assessee for Cenvat credit prior to the date of registration as ‘Business Auxiliary Service’ - Held that:- The assessee had applied for registration under ‘Cable Operator’ service in the year 2005 and he was not liable to pay Service Tax for the ‘Cable Operator’ service. Subsequently, the assessee had applied for change of classification of service rendered by them under ‘Business Auxiliary Service’ and amended registration changing classification of service was made on 22-12-2006. In the meanwhile, they started discharging Service Tax by utilizing Cenvat credit and paid interest wherever there was liability. Interest liability has arisen because the original adjudicating authority took a stand that the assessee was not eligible for Cenvat credit prior to the date of registration as ‘Business Auxiliary Service’. The Commissioner (Appeals) has rightly held that the assessee is eligible for the Cenvat credit. Therefore interest liability does not arise.- Decided in favour of assessee. Penalty imposed under Sections 76, 77 & 78 of the Finance Act, 1994 - Commissioner (Appeals) set aside the penalty - Held that:- The claim of the assessee that there was some confusion about the classification and they had entertained a bona fide belief that they are not liable to pay Service Tax and there is no intention to evade payment of Service Tax has merits. Therefore, invocation of Section 80 of the Finance Act, 1994, by the Commissioner (Appeals) is in order. - Decided in favour of assessee.
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