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2015 (11) TMI 876 - AT - Service TaxLevy of penalty - Tour Operator Services - utilization of the CENVAT Credit on the inputs services which were used for providing non-taxable output services. - when legal provisions are categorical and there is no doubt regarding interpretation of those provisions, whether lenient view could be taken for not imposing penalty - Held that:- there is no doubt that once output services are provided free of service tax and separate records are maintained, it is imperative that no credit could be utilized for providing non-taxable services. It is also stipulated that if violation of legal provisions is manifested by not restricting the credit utilization to 20 per cent of the credit, then imposition of penalty is attracted. - Adjudicating Authority has rightly imposed the penalty of ₹ 100 per day till the payment of service tax under section 76 of the Finance Act restricting the total amount of penalty equivalent to the amount of service tax involved. - Decided in favour of Revenue.
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