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2017 (1) TMI 1234 - CESTAT, BANGALORECENVAT credit - during the audit, the Department discovered assessee has availed service tax credit on marketing consultancy service on traded goods rendered by M/s. Carl Bechem Lubricants Middle East FZC and as per the reverse charge mechanism under Section 66A of the Finance Act, the assessee has wrongly taken the proportionate CENVAT credit to the extent of service tax attributable to trading activity from Chennai. Further the CENVAT credit has been reversed on being pointed out by the audit party. Held that: - as far as confirmation of demand and interest is concerned, I do not find any infirmity in the impugned order. Levy of penalty u/r 15(2) of the CENVAT Credit Rules - Held that: - unless and until there is a finding that there was suppression of fact and irregular availment of CENVAT credit, the question of levying penalty under Rule 15(2) of the said Rules does not arise - Moreover, in this case the appellant reversed the duty along with interest on being pointed out by the Department and there was no intention to evade payment of duty as is required under Rule 15 read with Section 11AC - penalty set aside. Appeal disposed off - decided partly in favor of assessee.
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