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2018 (9) TMI 1365 - AT - Service TaxCENVAT Credit - appellant had not paid the value of the services to the service providers - contravention of Rule 4(7) of Cenvat Credit Rules, 2004 - Revenue’s sole ground is that instead of taking the credit during the period involved in the appeal, the same was available to the assessee subsequently i.e. after making payments for the services. Held that:- It is seen that during intervening period the credit availed remained as a paper entry only and was not utilized by the assessee. Though in such a case even the interest was not required to be paid in terms of the Hon’ble Karnataka High Court decision in the case of Bill Forge Pvt. Ltd. vs. CCE & ST, LTU, Bangalore [2011 (4) TMI 969 - KARNATAKA HIGH COURT]. Wrong availment of ₹ 1.28 lakhs - Held that:- There could be a bona fide belief on the part of the assessee that inasmuch as the services stand availed by their sister concern only, they were in a position to avail the credit. While confirming the demand along with confirmation of interest, the penalty of ₹ 56,74,746/- imposed upon the appellant is set aside. Appeal allowed in part.
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