Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 1516 - AT - Service TaxCENVAT Credit - time limit for taking credit - whether the Cenvat Credit of ₹ 1,84,47,149/- has been rightly disallowed under Rule 14 of CCR, 2004 and further the tax of ₹ 61,997/- have been erroneously demanded which has been a clerical error in the presentation of the amounts by the appellant? - whether the penalties imposed under Sections 70, 77 and 78 of the Finance Act and Rule 15(3) of CCR have been rightly imposed? Held that:- There was no time limit prescribed in the Cenvat Credit Rules for taking credit. The time limit of 6 months was introduced w.e.f. 01.09.2014 which has got perspective effect as held by Hon’ble Allahabad High Court in CCE vs. Ram Swarup Electricals Ltd. [2007 (5) TMI 116 - HIGH COURT , ALLAHABAD]. It cannot be applied to the period prior to 01.09.2014 - disallowance of Cenvat Credit is set aside. Demand of differential tax of ₹ 61,997/- - for the financial year 2011-12 the gross receipt is computed as ₹ 5,51,73,149/- which comprises of signal fee ₹ 3,77,39,469/- but in the SCN it has been erroneously taken at 3,83,39,469/- thus there has been a difference of ₹ 6 lacs - Held that:- Te said clerical mistake in final account was noticed by appellants subsequently. Appreciating the mistake as same is evident from the record and books of account maintained on ordinary course of business, demand of difference amount is set aside. Penalty u/s 77 - Held that:- There is no deliberate defiance of the provision of law nor there is any act of suppression on the part of the appellant and the transaction was recorded in the books of accounts ordinarily maintained in the course of business, penalties under Sections 77(1)(b), 77(1)(c)(i), 77(1)(c)(iii), 77(2) and Rule 15(3) of CCR, 2004 is set aside. Penalty u/s 70 - Held that:- Penalty of ₹ 1,80,000/- under Section 70 is retained however it reduced to ₹ 14,400/- in terms of Section 70 and Rule 7C of Finance Act, 1994. Appeal allowed in part.
|