2012 (8) TMI 920 - HC - Service Tax

Penalty - Rule 15 of the CCR, 2004 - Held that - Admittedly, the liability to pay penalty for the wrongful availment of the credit of service tax has been inserted under Rule 15(2) with effect from 27th February 2010. Since the dispute in the present case relates to the period prior to 27th February 2010, no fault can be found with the decision of the CESTAT in deleting the penalty - Appeal dismissed.

Summary

The Bombay High Court dismissed the appeal regarding the penalty imposed under Rule 15 of the Cenvat Credit Rules, 2004 for availing credit of input service tax during October 2005 to March 2006. The penalty was deleted by the CESTAT as it related to a period before the penalty provision was inserted in February 2010.