TMI Blog2011 (3) TMI 627X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 73 of the Finance Act, 1994 - Appeal is allowed - ST/313/2010 - 467/2011 - Dated:- 11-3-2011 - Chittaranjan Satapathy, J. For Appellant: Shri A B Niranjan Babu, SDR For Respondent: Shri N S Sivakumar, CA Heard both sides. 2. The facts of the case are that the State Bank of India, (Leather International Branch), Kilpauk, Chennai, is providing both taxable and exempted service. As such, under Rule 6(3)(c) of the Cenvat Credit Rules, 2004, they were entitled to utilize cenvat credit only to the extent of an amount not exceeding 20% of the amount of service tax payable on output services, since they were not maintaining separate accounts. During the month of February, 2005, they were required to pay service tax amounti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appearing for the respondents states that the SBI has no intention to evade service tax. He explains that the Head Office of the SBI issued an internal Circular asking the branches to utilize cenvat credit for the period October, 2004 to February, 2005, and accordingly, the branch has taken credit keeping in view 20% of the tax payable for the months of October,2004 to February, 2005, since they have not been maintaining separate accounts. He however, states that he does not have a copy of the said circular. He cites the decision of the Hon'ble Supreme Court in the case of Pushpam Pharmaceuticals Co. Vs. Collector of Central Excise, Bombay - 1995 (78) ELT 401 (SC), which holds that the act of the assessees must be deliberate to invoke long ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts required for the purpose of invoking longer period of limitation is available in this case such as mis-statement, suppression as well as contravention of the provision with intent to evade payment of correct amount of tax coupled with wrong utilization of credit leading to short payment of tax. The pleas that the SBI has issued an internal circular, (a copy of which is not made available), that the SBI is a Govt. Bank, that it is collecting service tax for the department etc., are extraneous to determine limitation under Section 73 of the Finance Act, 1994. On the other hand, the SBI should be a model tax payer and to prove their bonafies, they should have promptly paid up the small amount of tax not paid by it once the audit pointed it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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