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2021 (4) TMI 349 - AT - Service TaxLevy of Penalty u/s 78 of FA - CENVAT Credit on disputed services, reversed or not - suppression of material facts or not - it is alleged that but for the audit of records by the Department, the issue relating to wrong availment of service tax credit on services not used for providing output service during the relevant period would have gone unnoticed - HELD THAT:- It is not disputed that the appellant reversed the cenvat credit on impugned services on being pointed out by the Department before the issuance of the show-cause notice. Further the appellant has not utilized the said credit and had sufficient balance during the relevant period in their cenvat credit account which was reversed and the Department was informed vide its letter dt. 14/10/2015 regarding the reversal of the said credit. Further the Division Bench of this Tribunal in the case of YCH LOGISTICS (INDIA) PVT. LTD. VERSUS C.C.E & C.S.T. -BANGALORE SERVICE TAX- I [2020 (3) TMI 809 - CESTAT BANGALORE] has considered the aspect of imposition of penalty under Section 78 and has dropped the penalty after considering the various decisions relied upon by the assessee. The imposition of penalty under Section 78 in the present case is not sustainable - Appeal allowed - decided in favor of appellant.
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