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2018 (2) TMI 933

Penalty - wrongly availed CENVAT credit, reversed alongwith interest as soon as pointed out - Held that: - reliance placed in the case of COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX Versus M/s ADECCO FLEXIONE WORKFORCE SOLUTIONS LTD [2011 (9) TMI 114 - KARNATAKA HIGH COURT], where it was held that The assessee has paid both the service tax and interest for delayed payments before issue of show cause notice under the Act. Sub-Sec.(3) of Sec. 73 of the Finance Act, 1994 categorically states, af .....

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ppellant is engaged in the activities of online information and data services, renting of immovable property services etc. They also have registration as an Input Service Distributor. They availed credit of service tax paid on various services and capital goods under provisions of Cenvat Credit Rules, 2004. It was noticed by the Department, during the course of audit, that in a few cases, the appellant has wrongly availed CENVAT credit twice on the basis of the same document. On being pointed ou .....

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ance of the show-cause notice, it is argued that the penalty is not imposable. They also placed reliance on the following case laws: i. CST, LTU Vs. Adecco flexione Workforce Solutions Ltd. [2012(26) STR 3 (Kar.)] ii. Central Warehousing Corporation Vs. CST [2013-TIOL-755-CESTAT-AHM] 4. The learned AR justified the penalty imposed on the appellant. He submitted that the reversal of CENVAT credit was done by the appellant only after the same was detected and pointed out by the audit. But for the .....

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reverse charge basis, since the appellant is entitled to have credit of the tax demanded as soon as it is paid. 6. The Hon ble High Court of Karnataka in the case of Adecco Flexione Workforce Solutions Ltd., the court observed as under:- 3. Unfortunately the assessing authority as well as the appellate authority seem to think. If an assessee does not pay the tax within the stipulated time and regularly pays tax after the due date with interest. It is something which is not pardonable in law. Th .....

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tice and not the person to whom it is issued. We take that, in ignorance of law, the authorities are indulging in the extravaganza and wasting their precious time and also the time of the Tribunal and this Court. It is high time that the authorities shall issue appropriate directions to see that such tax payers are not harassed. If such instances are noticed by this Court hereafter, certainly it will be a case for taking proper action against those law breakers. The above observations are applic .....

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