Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2017 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 797 - AT - Service TaxPenalty - case of Revenue is that the credit, so availed by the appellant, was not available inasmuch as the imported capital goods were not being used by them in the manufacture of the final products and were being hired out - Held that: - the assessee is not disputing the fact that the imported Hydraulic system was not at all used by them in their manufacturing activities and was hired out - It is also a fact that the credit of more than ₹ 10 lakhs was availed during the long period of June, 2009 to June, 2011 and was detected by the Prevantive Officers during the course of their visit in November, 2011 only. As such, it can be safely concluded that the appellants adopted the system of availing credit of duty paid on capital goods used in the manufacturing activities with an intention to avail credit not available to them and may be to take a chance. It is also a fact that as soon as the objection was raised by officers, the appellants paid back the entire credit immediately along with interest. Taking into consideration that the appellants paid back the credit immediately on being pointed out by the Revenue along with payment of interest and keeping in mind the fact that the penal proceedings were initiated against them, after a gap of three years, I deem it fit to restrict the penalty to 25% of the total duty amount in terms of proviso to section 78 of the Finance Act, 1994 - appeal allowed - decided partly in favor of appellant.
|