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2022 (6) TMI 1084 - AT - Service TaxLevy of service tax - drilling machine - contention of petitioner is that the provisions of Finance Act, 1994 excluded their area of operations as per the jurisdictional reach of Finance Act, 1994 - Demand of interest and penalty as well - HELD THAT:- In view of the settled finding of the Hon’ble High Court of Bombay in M/S. GREATSHIP (INDIA) LTD. VERSUS COMMISSIONER OF SERVICE TAX, OIL AND NATURAL GAS COMPANY LTD. [2015 (4) TMI 1006 - BOMBAY HIGH COURT], of non-taxability between July 2009 and February 2010, insofar as the drilling undertaken by the appellant herein for oil exploration, the impugned order is set aside. Demand of Interest - HELD THAT:- It is on record that the appellant had voluntarily reversed CENVAT credit alleged to have been taken without authority of law. Insofar as the leviability of interest arise, the decision of the Hon’ble High Court of Karnataka in COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX LARGE TAXPAYER UNIT, BANGALORE VERSUS M/S BILL FORGE PVT LTD, BANGALORE [2011 (4) TMI 969 - KARNATAKA HIGH COURT] has held that Without the liability to pay duty, the liability to pay interest would not arise. The liability to pay interest would arise only when the duty is not paid on the due date. If duty is not payable, the liability to pay interest would not arise. Penalty - HELD THAT:- The liability for interest does not merit approval and, consequently, the penalty too is unwarranted. Appeal allowed - decided in favor of appellant.
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