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 849 - AT - Service TaxReversal of wrongly taken credit done - whether interest is chargeable from the date when it was taken upto the date of its reversal - CENVAT Credit taken on dumpers - Held that:- Cenvat Credit was reversed before utilization is not in dispute - Interest is compensatory in character, and is imposed on an assessee, who has withheld payment of any tax, as and when it is due and payable. The levy of interest is on the actual amount which is withheld and the extent of delay in paying tax on the due date. If there is no liability to pay tax, there is no liability to pay interest. Section 11AB of the Act is attracted only on delayed payment of duty i.e., where only duty of excise has not been levied or paid or has been short levied or short paid or erroneously refunded, the person liable to pay duty, shall in addition to the duty is liable to pay interest. Section do not stipulate interest is payable from the date of book entry, showing entitlement of Cenvat credit. Interest cannot be claimed from the date of wrong availment of CENVAT credit and that the interest would be payable from the date CENVAT credit is taken or utilized wrongly - Following decision of Commissioner of Central Excise & ST, LTU Bangalore Vs. Bill Forge Pvt. Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT] and U.O.I. Vs. Indo Swift Laboratories [2011 (2) TMI 6 - Supreme Court] - Decided in favour of assessee. Valuation - Inclusion of Value of free supplies of diesel - Held that:- As regards the demand of Service Tax on the value of the free supplies of diesel is concerned, the Larger Bench of this Tribunal in the case of M/s. Bhayana Builders Pvt. Ltd. Vs. Commissioner Service Tax, Delhi [2013 (9) TMI 294 - CESTAT NEW DELHI] has held that the value of free supplies is not includible in the gross consideration received by the Service provider for rendition of taxable service. Consequently the demand of ₹ 78,17,056/- relating to free supplies of diesel is not sustainable. - Decided in favour of assessee.
|