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2015 (11) TMI 973 - AT - Service TaxDenial of CENVAT Credit - Demand of interest - Penalty u/s 78 - Held that:- appellant discharged the service tax liability by way of cenvat credit, which otherwise would have been utilised for payment of dues, and hence the interest liability should be restricted to from the date the liability arose to the date of payment made through cenvat credit - Tribunal in the case of CCE, Mumbai vs. CEAT Limited [2010 (3) TMI 621 - CESTAT, MUMBAI], in Para 9 of the order, held that credit is to be restored. This decision of the Tribunal was upheld by the Hon’ble High Court of Bombay, reported as [2013 (7) TMI 568 - BOMBAY HIGH COURT]. - appellant discharged the service tax liability by way of cenvat credit, which otherwise would have been utilised for payment of dues, and hence the interest liability should be restricted to from the date the liability arose to the date of payment made through cenvat credit. - appellant is liable to pay interest from the date of liability of tax to the date of payment of same through cenvat credit. The same may be quantified by the adjudicating authority. - appellants were not aware of the amended provisions and there was no intention to evade tax. Hence, imposition of equivalent penalty under Section 78 of the Finance Act, 1994 is not warranted and the same is set-aside. - Decided partly in favour of assessee.
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