2011 (4) TMI 467 - AT - Service Tax

Demands, interest and penalty - denying the benefit of MODVAT Credit on Service Tax paid on various services received for maintenance and repair of wind mill located at a distance from the factory - Hence, the issue stand covered by the precedent decisions of the Tribunal in case of M/s Rajhans Metals Pvt.Ltd. Vs. CCE Rajkot 2007 -TMI - 2311 - CESTAT, AHMEDABAD - Accordingly, uphold confirmation of demands of Service Tax along with confirmation of interest - However, penalties imposed upon the appellant is being set aside, observing that the issue is of bonafide interpretation of law, penalty was set aside.

Summary

The appellate tribunal confirmed duties of Rs.50,919 and Rs.33,660 against the appellant for denying MODVAT Credit on Service Tax paid for maintenance and repair of wind mill. The issue was found covered by precedent decisions, upholding demands of Service Tax and interest, while setting aside penalties due to bonafide interpretation of law. Both appeals were disposed of accordingly.