2009 (10) TMI 266

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nts have wrongly availed credit of Rs. 37,077 on the basis of documents of service tax paid by their subscriber cable operator during the period October, 2004 to September, 2005. Original authority confirmed the denial of credit along with interest and also imposed penalty under sections 76 and 77 of the Finance Act, 1994. Commissioner (Appeals) set aside the penalties. Held that- there was a conf .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... der sections 76 and 77 of the Finance Act, 1994 was set aside. 2. The relevant facts of the case, in brief, are that the respondents are engaged in providing taxable service under the category of Multi-System Operator (MSO) which was brought under service tax net with effect from 10-9-2004. It has been alleged that the respondents have wrongly availed credit of Rs. 37,077 on the basis of docum .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... r (Appeals) while setting aside the penalties had not considered the facts of the case properly. 4. Learned Advocate on behalf of the respondents submits that levy of tax on MSO was introduced on 10-9-2004 and the period of dispute is October, 2004 to September, 2005. She submits that it is a new levy and there was confusion on levy of tax on MSO. She further submits that the respondents revers .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e under bona fide belief of misinterpretation of chain of service tax credit moving from cable operator to MSO and MSO to Broadcaster. As there was no clarity in the mind of general public about the payment of service tax liability through Cenvat credit. I find that the appellants had paid the service tax through TR-6 challan and their Service Tax credit account by virtue of misinterpretation of C .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... usion that there was a reasonable cause for failure to pay the tax. It is a case, where the respondents paid the tax by way of availing Cenvat credit, which was ascertained as irregular, and was reversed by them subsequently. 7. In view of the above discussion, I find that there is no reason to interfere with the order of the Commissioner (Appeals). Accordingly, appeal filed by the revenue is r .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X