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2014 (11) TMI 333 - AT - Service TaxWaiver of penalty - Whether for the short payments of Service Tax, the assessee needs to be penalized under section 76 of the Act and whether Cenvat credit to be denied to them along with imposition of penalty under section 76 and Rule 15(3) of CC Rules for the same - Held that:- no malafides could be attributed to the assessee as the amounts were duly reflected in their ST-3 return and also as the amounts of short payment are rather on the lower side which have been paid voluntarily. - penalty waived extending the provisions of section 80 - Decided in favor of assessee. Denial of the credit is on account of infirmities in the input invoices. I note that this is not the case of the Department that the input services have not been availed or payments not made for the same. In the circumstances, I find force in the plea made by Shri Rahul Aggarwal, CA for consideration of waiver of penalty and accordingly give benefit of section 80 of the Act and hold that no penalty under section 78 is imposable upon the assessee. I also note that this is not a case of short payment of Service Tax and therefore penalty under Section 76 of the Finance Act 1994 is not at all warranted. As regards imposition of other penalty is concerned, I hold some imposition is necessary as the invoices on which the Cenvat credit was availed have been found to have deficiencies which of course, which have been later rectified. Accordingly imposition of penalty ₹ 2000/- under Rule 15(3) of Cenvat credit Rules 2004 is justified and no interference is made. Penalties imposed under section 76 and section 78 of the Finance Act 1994 are not sustainable as per grant of benefit of section 80 of the Act. However token penalty of ₹ 2,000/- is held to be liable - Decided partly in favour of assessee.
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