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2018 (5) TMI 921 - AT - Service TaxExcess utilisation of CENVAT credit beyond the limit of 20% - Imposition of equivalent penalty u/s 7B - storage and warehousing services - Held that: - appellant on being pointed out has discharged the service tax liability as worked out by the Revenue and had paid the differential amount of ₹ 29,295/- and interest was paid before the adjudication was taken up - the argument of the learned counsel needs to be accepted that there is no reason for them to not to pay the tax; also that they could have entertained a bonafide belief that the amount charged by them could be covered under cargo handling services for which tax liability was discharged - provisions of Section 80 can be invoked in this case and the penalty can be set aside. Excess utilization of CENVAT credit - Held that: - Utilisation of CENVAT credit in 'excess of 20% could be a procedural infraction but definitely not an evasion of tax which is the requirement for imposition of equivalent amount of penalty. If the entire amount of the differential utilisation of CENVAT credit along with interest stands deposited before the adjudication proceedings, the provisions of Section 80 needs to be invoked in this case. Penalties set aside - appeal allowed - decided in favor of appellant.
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