TMI Blog2012 (11) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... .S.V. Murthy, J. REPRESENTED BY : Shri J.S. Negi, AR, for the Appellant. Shri S. Dixit, Advocate, for the Respondent. [Order]. During the months October 2005 and March 2006, the respondent has taken cenvat credit of service tax on input services before they had made the actual payment for the services received and the tax thereon. When this was pointed out, the assessee promptly reversed the cenvat credit taken by them in the month of December 2006. Thereafter, show cause notice was issued proposing to appropriate amount already paid towards the duty and proposing imposition of penalty under Section 11AC of Central Excise Act, 1944 and also proposing demand of interest. In the impugned order the demand for interest was se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices received and the service tax thereon, they could take the credit. Since the credit remained unutilized, as per the existing law during the relevant time when there were several decisions holding that no interest is payable when credit has not been utilized, they did not contest the demand for cenvat credit at all and simply reversed it and assumed that the matter has reached the end. However, the Revenue chose to issue a show cause notice on 7-5-2008 i.e. more than one year after the payment was made by the assessee and more than two years after the credit had been taken. Obviously, without invoking extended period demand or appropriation of amount paid could not have been made. It is only because the appellants did not want to challe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . I am inclined to agree with the learned counsel for the assessee that in view of revenue neutral situation and in view of the fact that penalty was set aside, the assessee cannot be found fault with and if the demand for interest is upheld, it will be against the interest of the respondents for no fault of the respondent. Since the purpose of the dispute resolution system is to ensure justice to assessee as well as the Revenue, it is necessary, if the legal interpretation has been changed the matter is considered afresh. Accordingly, in the interest of justice, I feel that the matter is required to be remanded to Commissioner (Appeals) for fresh decision after taking into account the changes in the law and submissions that may be made by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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