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2015 (9) TMI 160 - AT - Service TaxImport of taxable services - reverse charge - entire exercise is revenue neutral - Banking and other Financial Services - Invocation of extended period of limitation - Levy of Penalties under Sections 76, 77 and 78 - Mens rea - Held that:- Service tax was paid by the appellant after the issue of the show cause notice and before the passing of the adjudication order. Revenue relies on the decision of the Apex court in the case of Kitply Industries (2011 (4) TMI 523 - SUPREME COURT OF INDIA). - The revenue neutral situation comes about in relation to the credit available to the appellant himself and not by way of availability of credit to anyone else. Therefore the case of Jay Yushin Ltd [2000 (7) TMI 105 - CEGAT, COURT NO. I, NEW DELHI] applies in the present situation after considering the guidance drawn by the Supreme Court in the case of KitPly Industries (supra). In this view of the matter, as the entire exercise is revenue neutral we find that mens rea is not established for imposition of penalties. - As the duty stands paid and credit of duty paid is admissible, the impugned order is set aside to the extent of recovery of interest and imposition of penalties. - Decided in favour of assessee.
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