Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2015 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 1348 - AT - Service TaxDenial of CENVAT Credit - whether the demand of ₹ 33,619/- under Rule 6(3)(b) equal to 8% value of the trading activity in terms of Rules 6(3)(b) is correct or otherwise and whether penalty of ₹ 1,63,370/-imposed under Section 78 in respect of denial of Cenvat Credit availed before the payment of Service value to the service provider is legal and correct or not - Held that:- Credit was disputed only due to the reason that same was availed before the payment of service value to the service provider by the appellant however, in principle, the credit was very much admissible to the appellant which the appellant on pointing out discrepancy, immediately paid the amount. There was no malafide intention to evade the service tax by the notice and their only lapse was that they availed said credit before the payment of service value to the service provider, which they made goods by making payment of service tax amount along with interest. I find that explanation given by the original authority is satisfactory in invoking Section 80 for dropping the penalty proposed under Section 78. Therefore the Ld. Commissioner’s observations in the impugned order that there is no justification are erroneous and incorrect. In view of this, I set aside the penalty - Decided partly in favour of assessee.
|