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2015 (12) TMI 601 - AT - Service TaxDenial of CENVAT Credit - GTA services - Imposition of penalty - Held that:- Appellant has already paid the entire CENVAT Credit demand on GTA services on 16.07.2012. During the course of hearing, the learned Advocate appearing on behalf of the Appellant fairly agreed that the interest on the irregularly taken credit may be payable. In view of the case law of Market Systems Ltd Vs CCE & ST Vadodara-II (2014 (6) TMI 33 - CESTAT AHMEDABAD), passed by the Bench, it is held that the interest on the in-admissible CENVAT Credit taken is payable by the Appellant. So far as the imposition of penalty upon the Appellant under Rule 15(4) of CENVAT Credit Rules 2004 is concerned, it is observed that there was a favourable case law with the Appellant in the form of Larger Bench decision of the Tribunal of Bangalore in the case of ABB Ltd Vs CCE & ST Bangalore (2009 (5) TMI 48 - CESTAT, BANGALORE) wherein it was held that the GTA services from the place of removal is admissible even after the date of amendment to CENVAT Credit Rules. This order passed by Larger Bench was set aside by Hon'ble Karnataka High Court [2011 (3) TMI 248 - KARNATAKA HIGH COURT] only in the year 2011. Therefore, the Appellant had a bonafide belief that such CENVAT Credit taken is admissible. Accordingly, it is held that present case is not a fit case for imposition of penalty under Rule 15(4) of CENVAT Credit Rules 2004. - Decided in favour of assessee.
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