2011 (9) TMI 818 - AT - Service Tax

Penalty on the ground that since the entire excise is revenue neutral as credit of the entire amount of tax is available they could not be held guilty of suppression so as to invoke the extended period for imposing a penalty under Section 78 Held that - when an appellant can take credit and utilise it further for tax payment he would not get any benefit by notices paying tax and therefore extended period could not have been invoked. Penalty set aside and appeal allowed

Summary

The Appellate Tribunal CESTAT, CHENNAI overturned a penalty imposed under Section 78 of the Finance Act, 1994, stating that since the excise is revenue neutral with full tax credit available, the assessees could not be penalized for suppression. The decision was based on a previous Tribunal order and the penalty was set aside, allowing the appeal.