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2018 (5) TMI 782 - CESTAT NEW DELHIShort payment of service tax - demand alongwith interest - It was observed by the Officers of Service Tax Department that as the head office (Unit-I) had no balance in its Cenvat account, it cannot pay Service Tax from the said account and is required to pay the same in cash - Held that: - proceedings initiated against the appellant for recovery of the wrongly availed /utilized cenvat credit by the authorities below is proper and justified. Since the appellant had deposited such amount subsequently, it is liable to pay interest for the days of delay in payment / reversal of the cenvat amount - Time limitation - Held that: - the appellant had never voluntarily disclosed its modus operandi adopted to the Department. Since the Department gathered the information upon investigation into the matter, the show cause proceedings initiated by the Department will not be hit by the bar of limitation. Penalties u/s 76 and 78 - Held that: - Since penalties cannot be imposed simultaneously under the said statutory provisions, the penalty imposed under Section 76 has to be set aside - Since the entire disputed amount of Cenvat Credit was reversed before issuance of show cause notice and the appellant had reflected the transactions in the ST-3 returns, as per the amended provisions of Section 78 of the Act, the penalty should be reduced to 50% of the quantum of penalty confirmed by the authorities below. Appeal allowed in part.
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