TMI Blog2010 (8) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... d the appellant is entitled for entire service tax credit availed by them. Accordingly, the issue No. 1 is settled in favour of the appellants. Waiver of penalty u/s 80 - The statement of the appellants which was recorded on 11-4-2007 and as per the statement, nowhere it is coming out that the appellants were having any knowledge of their service tax liability, prior to the search by the Revenue department - Accordingly, the service tax liability being a new one and there were confusions regarding the applicability of the service tax liability under the Business Auxiliary Services, the appellants are entitled for benefit of section 80 of the Finance Act, 1994 for waiver of penalty -Hence, the impugned order is set aside and the appeal i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellants were under the impression that the activity undertaken by the appellants does not fall under the Business Auxiliary Services as the Service Tax Laws are not cleared to the assessee. He further submitted that when the department pointed out to the appellants, they immediately paid the service tax on their own and also got registered with the department. The appellants took the CENVAT credit on input service credit available to them during the period under dispute which was denied by the Department saying that prior to registration CENVAT credit is not available. He also submitted that there is no provision under the CENVAT Credit Rules, 2004 or Service Tax Credit Rules, 2002 that prior to registration CENVAT credit is not allowa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to registration. In fact CENVAT Credit Rules clarifies that the assessee is available for CENVAT credit which is applicable to them within the provisions of CENVAT Credit Rules, 2004 or Service Tax Credit Rules, 2002. Accordingly, the learned DR also agreed that CENVAT credit is available to the appellant with effect from 10-9-2004 when the CENVAT Credit Rules, 2004 came into force but I find in this case the Service Tax Credit Rules, 2002 were also in force prior to 10-9-2004 and the appellant is entitled for entire service tax credit of Rs. 34,113 availed by them. Accordingly, the issue No. 1 is settled in favour of the appellants. 6.3 With regard to the issue No. 2, I have gone through the statement of Shri Ashish Dalia, Director of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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