Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 76 - AT - Service TaxDisallowance of CENVAT Credit - Trading activity - Credit reversed before issuance of SCN - Thereafter assessee did not respond to SCN and not attended hearing - Ex parte order passed - Imposition of penalty and interest - Held that:- From the judgment in Bill Forge Pvt. Limited [2011 (4) TMI 969 - KARNATAKA HIGH COURT], it is clear that liability to interest under Rule 14 of the Cenvat Credit Rules, 2004 read with Section 75 of the Finance Act, 1994 would arise only on that amount of cenvat credit, both debited in assessee’s books of accounts and utilised (taken) for remittance of the assessee s tax liability. There is no discussion in the adjudication order on this aspect of the matter. We, therefore, remit the matter to the respondent -Adjudication Authority for computation of the amount of interest liability, on the basis of the actual amount of cenvat credit utilised for discharging its service tax liability on the taxable services provided, by the assessee. Adjudication orders are sustained to the extent of the asssessed demand of cenvat credit and appropriation of the irregularly availed credit reversed by the assessee. The amount of penalty is also confirmed subject to an option that shall be provided to the appellant, to remit 25% of the penalty together with the specified interest, within thirty days from the date an order is passed by the Respondent determining the interest liability afresh, under Rule 14 of the Cenvat credit Rules read with Section 75 of the Finance Act, 1994, and the order is communicated to the appellant. This option shall be provided by the adjudication Authority in the order to be passed, pursuant to this remand - Decided partly in favour of assessee.
|