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2009 (4) TMI 151 - AT - Service TaxCenvat Credit – accumulated credit of service tax as on 10.09.2009 before introduction of Cenvat credit rules, 2004 - Show cause notice dated 10.02.2006 was issued proposing to disallow credit on input services availed during the period 1.7.2003 to 10.09.2004. The Original Authority confirmed the demand of tax of Rs. 2,25,520/- for wrong utilisation of credit balance lying as on 10.09.2004 in Cenvat Account and Rs. 20,501/- on irregular availment of credit and imposed penalty of equal amount along with interest – held that - it is clear that as per transitional provision under Rule 11 of the Rules, 2004, credit can be utilised in accordance with Rule 3 (4) of Cenvat Credit Rules, 2004 for payment of any duty of excise on any final product. Therefore, allegation made in the show cause notice is not correct. - As the denial of credit of Rs. 2,25,520/- is set aside and the issue involved is interpretation of provisions of law, the imposition of penalty is not warranted. Accordingly, penalties are set aside.
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