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2017 (10) TMI 663 - AT - Service TaxUtilization of CENVAT credit - GTA services - Sub-Rule (4) of Rule 3 of CCR, 2004 - penalty reduced to 25% - Held that: - As per the explanation to the Rule 3 of the CCR, 2004, it has been specifically incorporated w.e.f. 01.07.2012 that CENVAT credit cannot be used for payment of service tax on GTA as service recipient and if there is a violation of this rule, then, the assessee attracts penal action u/r 15 of CCR, 2004 for payment of GTA services as service recipient. But despite that, the assessee utilized the credit for payment - there is a clear violation of the rule inspite of the knowledge on the part of the assessee. Therefore, in view of such circumstances, the reduction of penalty to the extent of 25% of the wrongly utilized cenvat credit is not sustainable in law - appeal allowed - decided in favor of Revenue.
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