TMI Blog2018 (9) TMI 1595X X X X Extracts X X X X X X X X Extracts X X X X ..... that demand of interest and penalty cannot sustain when the credit has been reversed before utilization - in the present case, even before providing output service, the assessee has reversed the credit - demand of interest and penalty do not sustain - decided in favor of assessee. - Appeal Nos. ST/569 & 574/2012 - Final Order Nos. 42226-42227/2018 - Dated:- 10-8-2018 - Ms. Sulekha Beevi C.S., M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted out, the assessee reversed the credit to the tune of ₹ 1,56,10,334/- and informed the department. A show cause notice was issued proposing to demand the credit wrongly availed along with interest and for imposing penalty. After due process of law, the original authority confirmed the demand. However set aside the demand of interest but imposed equal penalty. Aggrieved by the imposition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said fact that the credit has been reversed before utilization is admitted by the department in the show cause notice itself. On the very same basis, the Commissioner has set aside the interest. However, the Commissioner even though opined that the credit has been reversed before utilization has imposed equal penalty under section 78 of the Finance Act, 1994 with option to pay reduced penalty. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as held that demand of interest and penalty cannot sustain when the credit has been reversed before utilization. Even in the show cause notice, it is stated by the department that the appellant has reversed the credit before utilization. In fact, even before providing output service, the assessee has reversed the credit. Following the decision in the case of Strategic Engineering (supra), we are o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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