2013 (4) TMI 46 - AT - Service Tax

Penalty - Wrong availment of Cenvat Credit - appellant immediately reversed the Cenvat credit to satisfy the point arise in audit. - Revenue impose penalty - Held that - There is no whisper about deliberate breach of law by the appellant which normally is consideration while invoking penalty provision. The appellant may not be denied the benefit of Section 80 of the Finance Act, accordingly penalty is waived out appeal is allowed.

Summary

The Appellate Tribunal CESTAT, New Delhi ruled in favor of the Appellant. The appellant reversed the Cenvat credit immediately upon audit's pointing out of wrong credit availed. No deliberate breach of law was found to avoid service tax payment. Penalty was waived as there was no wilful breach of law and no default reason was identified. Penalty of Rs. 2,70,467/- was waived, and the appeal was allowed confirming tax and interest payable.