Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 635 - AT - Central ExciseCENVAT Credit - freight component in relation to transport of goods from non-taxable territory to India - as per the lower authorities the said service was exempted from levy of Service Tax during the period when such import of goods took place - appellant was not liable to pay the tax, but he paid erroneously - reverse charge mechanism - penalty - HELD THAT:- It is an admitted fact that the first Appellant was not liable to pay Service Tax on the transportation of goods by vessel services. However, the tax was paid and accordingly the Appellant had availed Cenvat credit of the same. The issue above is no longer res integra in view of the judgment of the Hon’ble Madras High court in the case of THE COMMISSIONER OF CENTRAL EXCISE, AND SERVICE TAX LARGE TAXPAYER UNIT VERSUS M/S TAMILNADU PETROPRODUCTS LTD, THE CUSTOMS EXCISE AND SERVICE TAX APPELLATE TRIBUNAL [2015 (11) TMI 840 - MADRAS HIGH COURT] where it was held that If, upon a misconception of the legal position, the assessee had paid the tax that he was not liable to pay and such assessee also happens to be an assessee entitled to certain credits such as CENVAT Credit, the availing of the said benefit cannot be termed as illegal. The Appellant assessee cannot be asked to reverse the Cenvat credit availed on tax paid under Reverse Charge basis when the payment is not disputed. Penalty - HELD THAT:- Revenue has not been able to prove beyond reasonable doubt, the presence of fraud, collusion, willful misstatement or suppression of facts on the part of the appellant assesse. Therefore, imposition of penalty under section 11AC of the Act is unwarranted. Appeal allowed - decided in favor of appellant.
|