2013 (8) TMI 159

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..... M.V. Ravindran; This appeal is directed against order in appeal No.Commr.(A)/372/VDR-II/2011, dt. 11.10.11. 2. Filtering out the unnecessary details, I find that the challenge in this appeal is for the imposition of interest of Rs.65,171/- under Rule 14 of the Cenvat Credit Rules, 2004 and penalty of Rs.2000/- under Rule 27 of the Central Excise Rules, 2002. Both the lower authorities have deman .....

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..... d claim. It is also his submission that the appellant on their own has reversed the cenvat credit availed by them on the service tax paid to the foreign nationals as commission, on 28.02.06. It is his submission that the appellants refund claim for such an amount which has been paid by them as service tax was sanctioned by the authorities on 08.04.08. It is his submission that both the lower auth .....

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..... y talk about reversal of cenvat credit taken or utilised wrongly and in this case, the action of the assessee mis-indicated that he has taken the credit wrongly. 5. On careful consideration of the submissions made by both sides and perused the records, I find that the issue involved in this case is regarding the interest liability on the appellant in availing cenvat credit wrongly and penalty. 6 .....

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..... 7. In the above factual matrix, it can be seen that the appellants action as understood by him, the availment of cenvat credit of the service tax paid on the commission paid to the foreign national, was in line of his business and hence availment of cenvat credit on such payment of service tax seems to be correct as it is not disputed by the department. It is also seen that having filed the ref .....

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..... ounds. Since I have allowed the appeal filed by the appellant in respect of the cenvat credit availed by him of the service tax paid on the commission to the foreign agents but they are disputing the liability in respect of the other part. On the other part i.e. wrong availment of the cenvat credit on the insufficient documents, I find that the penalty imposed of Rs.2000/- needs to be reduced to R .....

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