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2021 (12) TMI 428 - AT - Service TaxDemand of credit - reversal of availability of excess credit irregularly on the capital goods - extended period of limitation - HELD THAT:- The Ld.AR relied on decision of Hon’ble Supreme Court in the case of UOI AND ORS. VERSUS IND-SWIFT LABORATORIES LTD. [2011 (2) TMI 6 - SUPREME COURT] to say that they are liable to pay interest. That issue was examined by the Hon’ble Karnataka High Court in the case of COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX LARGE TAXPAYER UNIT, BANGALORE VERSUS M/S BILL FORGE PVT LTD, BANGALORE [2011 (4) TMI 969 - KARNATAKA HIGH COURT] in which case the Hon’ble High Court has examined the issue and held that although the credit taken but the same remained unutilized, in that circumstance, no interest is payable. But the said issue has been considered in the case of THE COMMISSIONER OF CENTRAL EXCISE VERSUS M/S. SUNDARAM FASTENERS LIMITED [2014 (2) TMI 551 - MADRAS HIGH COURT] to say that the interest is payable. As there are contradictory decisions of the Hon’ble High Courts after the decision of Hon’ble Apex Court. In that circumstance, the issue is to be decided by this Tribunal independently. This Tribunal in the case GTL INFRASTRUCTURE LTD. VERSUS COMMISSIONER OF SERVICE TAX, MUMBAI [2014 (9) TMI 647 - CESTAT MUMBAI] has taken a view that in case where the credit is taken earlier has been reversed without utilizing the same, in that circumstance, no interest is payable. Therefore, in view of the decision of this Tribunal, it is held that the appellant is not liable to pay interest. Although the appellant has paid interest, he has made request for dropping proceedings initiated by show cause notice. The facts of the case of Sundaram Fasteners is not applicable to the facts of this case - no interest is paybale and no penalty can be imposed on the appellant. Appeal allowed - decided in favor of appellant.
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