2010 (12) TMI 198

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..... ovision in law for availing proportionate credit but the reversal was made at the instance of the Department. Subsequently, the Department has levied interest and penalty in respect of such reversal which in the first place was not required to be done - The only restrictions are that the credit should not exceed the amount of service tax paid and the second restriction is that the credit should no .....

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..... tes that as desired by the Department, the appellants have re-credited the impugned amount of credit in respect of the Hosur Unit which has been availed by the Mysore Unit subsequently. He states that there is no provision in law for availing proportionate credit but the reversal was made at the instance of the Department. Subsequently, the Department has levied interest and penalty in respect of .....

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..... ious units of the same assessee, the departmental authorities cannot put a restriction that such credit should be utilized proportionately by each unit. We also find that the case of the Department is squarely covered by the ratio of the earlier decision of the Tribunal in the case of ECOF Industries (supra). As such, we set aside the impugned order and allow the appeal.
Case laws, Decisions, .....

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