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2023 (7) TMI 1327 - AT - Service TaxLevy of penalty - penalties imposed inspite of service tax was paid - taxability of service challenged for setting aside penalty - Market Survey fees - Export Promotional Expenses - Technical Fees and Consultant Fees - Legal and Professional Consultancy - revenue neutrality - HELD THAT:- It is found that without going into merit of taxability the issue of penalty or otherwise also can be decided on the submission of revenue neutral. The appellant being a manufacturer and exporter of the goods all the services received by the appellant are in relation to export of goods - all the services were used in relation to export of goods. Therefore, the appellants were eligible for availing the cenvat credit on the service tax payable on the aforesaid services on reverse charge mechanism. In view of the decisions in COMMR. OF C. EX. & CUS., VADODARA-II VERSUS INDEOS ABS LIMITED [2010 (3) TMI 656 - GUJARAT HIGH COURT] and COMMISSIONER VERSUS INDEOS ABS LTD [2011 (3) TMI 1575 - SC ORDER] it is found that whenever there is a revenue neutral situation no malafide should be attributed to the assessee. Considering the aforesaid settled legal position in the present case the penalties imposed by the Adjudicating Authority are not sustainable. Hence, the same are set aside. However, the service tax paid by the appellant is maintained on conceding by the learned Chartered Accountant. Consequently, the interest on service tax demand is also sustained and the same is recoverable from the appellant. The impugned order stands modified - Appeal allowed in part.
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