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2021 (10) TMI 535 - HC - Service TaxDenial of CENVAT Credit with penalty - extended period of limitation - first year of service tax implementation - recovery of service tax not paid - failure to submit half yearly returns in time - service tax was not paid in time - suppression of facts or not - Section 73(1) of the Finance Act, 1994 - HELD THAT:- The respondent-Bank has maintained separate accounts in respect of service tax and education cess. The service tax was implemented with effect from 10.09.2004. The Commissioner and the Tribunal both have arrived at a conclusion that the assessee are new to service tax matters. The Commissioner as well as the Tribunal have also arrived at a conclusion that the respondent-Bank has accounted service tax and education cess separately while making cash payments. The material on record does not indicate that the respondent-Bank has indulged in any one of the ingredients contemplated under Section 73 of the Finance Act, 1994 and therefore, the proviso to Section 73 of the Act would not be available to the revenue. The Commissioner was of the view that there was a technical lapse on the part of the respondent Bank - The service tax was implemented in the month of September 2005 and therefore, the material on record clearly indicates that there was no deliberate intent to evade tax and any lapse on the part of the respondent-Bank was rightly viewed by the authority as a technical lapse. There are no infirmity or illegality in the order under challenge - appeal dismissed.
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