2018 (3) TMI 996 - AT - Service Tax

Penalty u/s 78 - CENVAT credit - various input services - Held that - identical issue decided in the case of Taj Malabar Hotel (vivanta, Malabar Cochin) , Willingdon Island Versus Commissioner of Central Excise, Customs and Service Tax, Cochin-CCE 2018 (3) TMI 973 - CESTAT BANGALORE where the Tribunal disposed of the appeal by way of remand - appeal allowed by way of remand.

Summary

Issues:
Appeal against order rejecting appellant's appeal but setting aside penalty under Section 78 of the Finance Act due to excess cenvat credit availed by the appellant from February 2006 to March 2008.

Analysis:
The appeal before the Appellate Tribunal CESTAT Bangalore was directed against a common impugned order passed by the Commissioner (Appeals) concerning the appellant's availing of cenvat credit on various input services for payment of service tax. The appellant provided multiple services, both taxable and non-taxable, leading to the utilization of full credit for service tax payment. Allegations of excess cenvat credit availed during a specific period were confirmed after due process, resulting in the rejection of the appeal by the Commissioner (Appeals). The appellant contended that the impugned order lacked sustainability in law as it failed to consider the facts and law properly. The Tribunal, after hearing both parties and perusing the records, noted the identical issue with a previous appeal and decided to remand the present case back to the adjudicating authority for reconsideration after following the principles of natural justice. This decision was based on the earlier ruling where the Tribunal set aside the impugned order and directed cooperation from the appellant in producing evidence. The appeal was allowed by way of remand, emphasizing the need for a fresh order in compliance with natural justice principles.

This detailed analysis of the judgment highlights the procedural aspects, legal contentions, and the Tribunal's decision to remand the case for a fresh order, ensuring fairness and adherence to legal principles.