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2014 (8) TMI 226 - AT - Service TaxDisallowance of CENVAT Credit - erection, installation and commissioning service - Interest u/s 11AB - Applicable section whether Section 11AB or Section 75 - Held that:- the appellant, having been registered with the Department as a provider of "erection, installation and commissioning service", could not have assumed for a moment that the said service was an input service. The plea of bona fide belief is, therefore, not sustainable. Though, in their periodical returns, the amounts of Cenvat credits taken on input services were mentioned, none of such services was specified. The fact that Cenvat credit was taken on "erection, installation and commissioning service" was not disclosed to the Department. Section 11AB of the Central Excise Act was correctly invoked in this case wherein Cenvat credit was wrongly availed of and utilized for payment of duty of excise on final product thereby creating a situation of short-payment of duty of excise on final product. It was the short-paid duty which was paid by the assessee before show-cause notice but without interest. This interest has been paid by the assessee after the impugned order was passed and the same is interest on duty of excise, which cannot be demanded under section 75 of the Finance Act, 1994. The correct provision of law governing this interest is section 11AB of the Central Excise Act - Decided against assessee.
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