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TMI Blog2022 (8) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... of accounts, it was noticed that the appellant is availing cenvat credit of service tax paid on various services such as telephone, security service, advertisement, man power supply, maintenance and repair services. These services are common input services for both taxable services as well as trading of goods. However, trading of goods is an exempted service w.e.f. 01.04.2011. As per Rule 6 (3) of Cenvat Credit Rules, 2004, the appellant is required to pay an amount equal to 6% of value exempted services or pay an amount under Rule 6(3A) for the period from April 2011 onwards. The appellant had not reversed the credit or paid the above said amount determined in terms of Rule 6 (3) of CCR 2004. Show cause notice dated 04.04.2013 was issued f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee as well as against them. In the case of Kundan Cars Pvt. Ltd. Vs CCE Pune - 2016 (43) S.T.R. 630 (Tri.-Mumbai), it was held that when the dispute is under litigation and it is interpretational in nature, the demand raised invoking the extended period alleging fraud, collusion and suppression of facts cannot sustain. The Ld. Counsel adverted to the SCN and submitted that the department has not been able to establish any fraud, collusion or suppression of facts on the part of the appellant. The appellant was under bona fide belief that prior to the amendment, trading cannot be considered as an exempted service. He also relied upon the decision in the case of BHEL Vs CC, C.EX & ST Medchal - 2020 (43) G.S.T.L. 395 (Tri.-Hyd.). H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egard to the demand of wrongly availed cenvat credit is time-barred and requires to be set aside which I hereby do. 7. The second issue is with regard to the demand of service tax to the tune of Rs.14,467/-. It is submitted by the Ld. Counsel that the appellant has paid the amount along with interest. Taking note of the same and also for the reason that there is no evidence to show that there has been fraud, collusion or suppression of facts on the part of the appellant, I am of the view that penalty imposed cannot sustain. Penalty imposed in this regard is set aside without disturbing the demand of service tax along with interest. 8. The impugned order is modified to the extent of setting aside the demand alleging wrongly availed cenvat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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