Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2015 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 42 - CESTAT AHMEDABADCENVAT Credit - Imposition of penalty - whether penalties are required to be imposed upon the appellant and whether cenvat credit for the corresponding period is admissible to the appellants - Held that:- Appellant is not contesting the issue on leviability of service tax. The arguments of the appellant for setting aside the penalties imposed are on the ground that ST-3 returns were filed belatedly along with payment of tax and interest and therefore, penalties are not imposable upon them. Belated filing of returns and payment of taxes along with interest is permissible under the Finance Act, 1994. If the view expressed by the Revenue is accepted then every delay in payment will attract penalties and provisions, regarding non issuance of show cause notice when entire service tax and interest is paid, will become redundant. There is no evidence in the show cause notice indicating that there was any suppression on the part of the appellant with intention to evade payment of tax. The entire service tax was paid by the appellant, along with interest, before the issue of show cause notice. Accordingly, it is held that order of the lower authorities regarding imposition of penalties under Section 76 and 78 of the Finance Act, 1994 is required to be set-aside. So far as denial of cenvat credit is concerned, it is observed that no show cause notice has been issued to the appellant for denial of cenvat credit and confirming demand without issue of show cause notice to that effect is in violation of principles of natural justice. Further the observations made by the first appellate clearly convey that cenvat credit was denied merely for procedural lapses. In the realm of liberalisation in the scheme of Cenvat Credits availed and reflected in the books of accounts of the appellant, as taken on the basis of duty paying documents to that effect, procedural latches cannot be made the basis for rejection of cenvat credit. - Decided in favour of assessee.
|