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2013 (1) TMI 323 - AT - Service TaxUtilizing CENVAT Credit in discharging service tax liability of GTA service (outward freight) - imposition of penalty under Section 76 - Held that:- It is not in dispute that utilization of CENVAT Credit on the GTA service (inward freight) was available to an assessee, till 18.04.2006 in discharging service tax on GTA service (outward freight) & under a bona fide mistake and belief, they had continued to utilize the CENVAT Credit availed on the amount of the service tax paid on the GTA service (inward freight), while discharging the liability as consignor for the GTA service (outward freight). The availment of the CENVAT Credit and its utilization were duly reflected in their ST-3 returns filed with the Department periodically As decided in CCE & C, Daman vs. PSL Corrosion Control Services Ltd [2010 (3) TMI 784 - GUJARAT HIGH COURT] & CST, Bangalore vs. Motor World [2012 (6) TMI 69 - KARNATAKA HIGH COURT] Section 80 stipulates that no penalty shall be imposable on an assessee under Sections 76, 77 or 78 ibid if the assessee proves that there was reasonable cause for the said failure. The Appellants have submitted that the lapse occurred due to their presumption that the adjustments of output service tax against input service tax is allowable, which has not been otherwise communicated to them by the Department. Hence, this is an appropriate case to invoke the provisions of Section 80 - in favour of assessee.
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