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2016 (12) TMI 101 - AT - Service TaxLevy of interest and penalty - taking credit of tax paid on input services on billed basis instead of payment basis leading to credit having been wrongly taken on tax amount unpaid to the extent of ₹ 2,30,06,772/- as on 31st March 2008 and which was reversed upon the discrepancy being pointed out - Held that: - while holding that interest liability will arise on erroneously taken credit till 17th March 2012 even if such credit is not utilised and that interest liability will arise on insufficient credit available as on date of making payment of taxes for each month arising from failure to reverse the credit of duty paid on capital goods, we remand the matter back to the original authority to ascertain availability of credit on due dates for each month after reversal after disallowing the credit not reversed on capital goods transferred. The adjudicating authority is directed to arrive at a finding of the interest liability by a strict application of rule 14 in relation to credit erroneously taken and section 75 of Finance Act, 1994 in the event of deficit of credit on the date on which tax liability was to be discharged - appeal disposed off by way of remand.
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