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2015 (2) TMI 239 - AT - Service TaxDemand of duty on vocational coaching service and on excess utilization of input service credit beyond the limit of 20-% of service tax payable on output service - Held that:- Omission by the government to exempt vocational coaching service for the period 1.7.2004 to 9.9.2004 could have lead to confusion in the mind of tax payers. When the notifications are frequently issued sometimes exempting services, then withdrawing exemption and then again issuing exemption, the assessees are not able to follow the notifications due to confusion. We find that no mens-rea or deliberate act of avoidance of payment of service tax has been established by the Revenue. As far as second issue of availability of excess cenvat credit is concerned, We find that the appellant voluntarily paid tax alongwith interest when being pointed out by the authorities. Here again, mens-rea does not get established. We also note that the condition of utilization of service tax to the extent of 20% did not prevent the assessee from having cenvat credit in their account; it only debarred them from utilizing the same to an extent exceeding 20%. In other words, as held in the various decisions, remaining cenvat credit would not have lapsed, it would have remained as credit in the account. Therefore once duty has been paid by the appellants, imposition of penalties is harsh and not warranted. - Reliance is placed on the judgement in the case of the case of CCE, Bangalore vs. Geneva Fine Punch Enclosures Ltd. (2011 (1) TMI 746 - KARNATAKA HIGH COURT) and in the case of CCE & SR, Bangalore vs. Adecco Flexione Workforce Solutions Ltd. (2011 (9) TMI 114 - KARNATAKA HIGH COURT). - Impugned order set aside - Decided in favour of assessee.
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