Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 252 - AT - Service TaxPenalty - amount of cenvat credit availed has been reversed alongwith the interest even before the issuance of SCN - credit on common input services for exempted as well as taxable services - non-maintenance of separate records - Held that:- The demand as was pointed out during the audit was paid alongwith the interest by the appellant, i.e. the cenvat credit availed on its trading activity (the exempted) was reversed alongwith the interest before issuance of the impugned Show Cause Notice. In accordance of Rule 6(3)(b) of CCR. In view of this admitted fact, no penalty can be imposed under Section 11AC of the Excise Act and under Rule 15 of the CCR Rules. This Tribunal in the case of CCE, Panchkula Vs. Krishna Cylinder [2015 (1) TMI 1197 - CESTAT NEW DELHI] has held that in accordance of the provisions of Section 73(3) of the Finance Act, the Show Cause Notice was not required to be issued when service tax along with interest has been paid by the assessee before the issuance of the Show Cause Notice. Further, in the Show Cause Notice there were no specific allegations of non-payment due to fraud, collusion, wilful mis-statement or suppression of material facts, it was held that no penalty can be imposed on such assessee - The facts in the present case are identical. Penalty cannot be imposed - appeal allowed - decided in favor of appellant.
|