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2016 (5) TMI 900 - CESTAT MUMBAI

2016 (5) TMI 900 - CESTAT MUMBAI - 2016 (44) S.T.R. 667 (Tri. - Mumbai) - Waiver of penalty imposed under Section 78 of the Finance Act, 1994 and late fee - Section 80 ibid - Trading of goods i.e. sale of empty cartons - Availed Cenvat credit on input services used in or in relation to provision of said services as well as in trading of goods - No separate accounts for receipt, consumption and inventory of input and input services used for providing taxable and non-taxable services as envisaged .....

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was reversing the credit attributed to the Trading Activity. However for the period before 31/3/2011 appellant paid entire amount alongwith interest. In view of lack of clarity on the inclusion of Trading Activity under exempted service w.e.f. 1/4/2011, the appellant has shown a reasonable cause for non reversal of the Cenvat credit attributed to the trading activity. Therefore the penalty imposed under Section 78 by invoking Section 80 of the Finance Act, 1994 is waived of. - Decided in favour .....

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ered recovery of interest under Section 75 of the Finance Act, and imposed penalty of ₹ 11,66,645/- under Section 78 of Finance Act, 1994. 2. The fact of the case is that the appellant is engaged in providing services of Storage and Warehousing Service, Real Estate Agents Service, Cargo Handling Services, Business Auxiliary Services. During the course of audit it was noticed that appellant is also engaged in trading of goods i.e. sale of empty cartons. They availed Cenvat credit on input s .....

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exempted services as specified in sub rule (3A) of Rule 6 of CCR, 2004. In view of the non observance of the procedure as laid down under Rule 6, show cause notice was issued and same was adjudicated wherein Ld. Commissioner confirmed the demand and imposed penalty therefore appellant is before me. 3. Ms. Gopalan, Ld. C.A. appearing on behalf of the appellant submits that present appeal is only for waiver of penalty imposed under Section 78 and they are not contesting the demand as appellant ha .....

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provisions for reversal of Cenvat credit under Rule 6(3) on trading sale, the appellant have reversed the credit at the material time. However when issue become clear the appellant have paid entire amount of Cenvat credit of ₹ 11,66,645/- alonwith interest. In view of this position of law there was no malafide intention on the part of the appellant, therefore penalty under Section 78 should not have been imposed as reasonable cause has been shown for non reversal of the Cenvat credit. 4. .....

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