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2015 (10) TMI 57 - AT - Service TaxWaiver of pre deposit - Demand of service tax - Interest u/s 75 - Penalty u/s 77 & 78 - Business Auxiliary Service - Held that:- Concept of revenue neutrality pleaded in the above illustrative transaction to be creative and attractive at first blush but wholly unacceptable as a normative principle. Entitlement to credit is predicated on the basis of such a facility provided under CENVAT Credit Rules, 2004. These Rules constitute a policy choice of the State. The entitlement of LICHFL to avail CENVAT credit depends upon provisions of the Rules, whether credit could be taken and the conditions upon which CENVAT credit may be availed under the Rules. The liability of the appellant to remit service tax for having provided BAS is clear and beyond dispute. Such liability is not eclipsed on the premise that had the appellant remitted service tax, LICHFL could have taken credit of the same. The whole schemata of taxation at the level of each taxable event would be rendered otiose and inoperative on application of the concept of revenue neutrality as a clog on the liability to service tax. - none warrant to apply this concept to legitimise an inference of immunity to tax of the appellant even for the normal period of limitation. Since the Interim Orders referred to above have applied the concept of revenue neutrality to grant waiver of pre-deposit, for the nonce we follow those decisions in respect of the extended period and the liability of the appellant for extended period but not for the normal period of limitation. - Partial stay granted.
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