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2018 (7) TMI 1205 - AT - Central ExciseAdjustment of amount of service tax paid against the demand of Central Excise duty - taxability of developing charges received for moulds - appellant claimed that they were under the bonafide belief that the amount received towards mould developing charges are in the nature of service and were liable for payment of Service Tax - penalty - Held that:- This issue is fully covered by the decision of this Tribunal in the case of M/s K.R. Packaging [2017 (2) TMI 893 - CESTAT NEW DELHI], where it was held that no duty is leviable as the Department never raised any objection which is an implied consent for having the Service Tax from the assessee-appellants. While demanding Central Excise duty appellants are eligible for adjustment of amount already paid as service tax. Accordingly, the demand is reduced by the amount so paid - penalty not warranted as the issue involved is interpretational one. Appeal allowed - decided in favor of appellant.
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