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2018 (2) TMI 1676 - AT - Service TaxCENVAT credit - whether the appellant as a service provider, is required to discharge duty/ revers the Cenvat credit on the used capital goods cleared as scrap, during the period 2009-2010 to 2013-2014? - Held that: - appellant had undisputedly cleared scrap of the capital goods used in providing output service during the period 2009-2010 to 2013-2014. Admittedly, the relevant Rule 3(5A) of CCR-2004 has been amended in 2012 and 2013. Prior to amendment to the said Rule effective from 01.4.2012, no liability could be fastened on the scrap of used capital goods by a manufacture or output service provider and after 27.9.2013 when the used capital goods were cleared as scrap, the liability to discharge duty was restricted to manufacturer and not service provider. However during the intervening period i.e. from March to 27.9.2013, the output appellant-service provider was required to pay duty on the transaction value of the scrap of used capital goods - the Appellant is not required to discharge duty on the scrap of capital goods except for the period from March to 27.09.2013. Penalty - Held that: - appellant being a PSU and frequent changes in law resulted in to non-payment of duty during the relevant period which was later paid before issuance of notice, in my opinion, imposition of penalty is unjustified. Appeal allowed in part.
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