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2016 (4) TMI 983 - AT - Service TaxReversal of Cenvat credit, payment and interest therefore - Business Auxiliary Service - Section 65 (19) of the Finance Act, 1994 - Misuse of facility of Cenvat credit by taking credit on input/input service used and input services not utilized for providing output services - Held that:- Ld. Commissioner has accepted the application dated 27.3.2009 submitted by the respondent under Section 73(3) of the Act, 1994 and dropped the proceedings of the show cause notice. In the result, the payment of Cenvat credit and interest stand confirmed and upheld, the only effect of dropping of the proceedings is no further penalty was imposed on the ground that under Section 73(3) no show cause notice could have been issued. On going through the nature of services and fact, it is found that Cenvat credit admissibility on the subject input services was contentious issue. The respondent could litigate the matter and they could have succeeded on merits. Moreover, it is beyond imagination that the entire Cenvat credit availed by them was liable to be disallowed. Taking into consideration of all these aspects, we are not interfering in the reversal of Cenvat credit, payment and interest thereof but respondent has clearly made out a fit case under Section 73(3) of Finance Act, 1994, according to which the department should not have issued show cause notice. Therefore, there could not be better case than the present case for allowing the application of the respondent filed under Section 73(3) of the Finance Act. - Decided against the revenue
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