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2010 (8) TMI 444 - AT - Service TaxCENVAT Credit - The provisions of law relating to service tax, nowhere it is mentioned that the CENVAT credit is not available prior to registration - In fact CENVAT Credit Rules clarifies that the assessee is available for CENVAT credit which is applicable to them within the provisions of CENVAT Credit Rules, 2004 or Service Tax Credit Rules, 2002 - Accordingly, CENVAT credit is available to the appellant with effect from 10-9-2004 when the CENVAT Credit Rules, 2004 came into force but the Service Tax Credit Rules, 2002 were also in force prior to 10-9-2004 and the appellant is entitled for entire service tax credit availed by them. Accordingly, the issue No. 1 is settled in favour of the appellants. Waiver of penalty u/s 80 - The statement of the appellants which was recorded on 11-4-2007 and as per the statement, nowhere it is coming out that the appellants were having any knowledge of their service tax liability, prior to the search by the Revenue department - Accordingly, the service tax liability being a new one and there were confusions regarding the applicability of the service tax liability under the Business Auxiliary Services, the appellants are entitled for benefit of section 80 of the Finance Act, 1994 for waiver of penalty -Hence, the impugned order is set aside and the appeal is allowed.
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