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2018 (12) TMI 858 - CESTAT KOLKATANon-imposition of penalty and Interest - CENVAT Credit - denial on the ground that the input services on which Cenvat credits have availed do not qualify for the same, under Rule 2 of Cenvat Credit Rules - Held that:- The appellant had been continuously informing the department about their intention of having centralised billing system and also paid the service tax for the various services rendered by them through their branch offices and site offices. The Department has not disputed the payment of such service tax. The ST-3 returns of the relevant period were filed also which clearly mentioned about the availment of the Cenvat credit by the appellant assessee. So in such circumstances, it cannot be alleged that the appellant assessee had any time suppressed the material fact from the department with intention of committing any fraud or suppression of the fact, before the department. There is no question of suppression of fact and the demand, if at all is required to be raised by Revenue, it was to be done within normal period. Interest - Held that:- As the entire demand have been paid by the assessee along with interest as per their own calculation which has been accepted by the adjudicating authority - interest not leviable. Penalty - Held that:- The demand has been raised for the impugned period in year 2007 which is held to be time barred, as there was no suppression on the part of the appellant assessee. As the demand itself is not sustainable, there is no question of payment of interest and imposition of penalty. Appeal allowed - decided in favor of appellant-assessee.
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