2023 (3) TMI 579 - AT - Service Tax

Levy of penalty under Section 78 and 77 (1)(c) of FA - suppression of turnover and/or mis-classification of taxable service - Extended period of limitation - disallowance of cenvat credit along with interest and further penalty - abatement under N/N. 30/2012-ST - HELD THAT:- It is evident on the face of the impugned order, that no case of suppression or fraud, or misrepresentation is found on the part of the appellant/assessee. In this view of the matter, I set aside the penalty under Section 78 of the Finance Act and also under Section 77(1)(c) of the Act. The appellant is entitled to cenvat credit of Rs.1,25,018/-, which is towards Group Insurance taken for the medical and accident claim benefits. In the facts and circumstances, the penalty under Rule 15 of Cenvat Credit Rules read with Section 78 of the Act also set aside.

It is further noticed that the appellant have also deposited the differential amount payable (during adjudication proceedings) as per the impugned order - the Adjudicating Authority is directed to recalculate their tax liability as per order of this Tribunal and after adjustment, if any, amount is found paid in excess, grant the refund to the appellant of the balance amount in cash.

Appeal allowed.