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TMI Blog2011 (2) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... s arisen in their capacity as recipients - It is also not in dispute that whatever service tax paid by them as recipient was available as credit and that they were eligible for rebate of duty on yarn cleared on payment of duty utilising such credit - Revenue held that the stay order of the Hon'ble High Court in relation to Rule 2(1)(d)(iv) when section 66A was not in force may not apply to the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondent under Section 78 of the Finance Act, 1994. 2. Heard both sides. 3. The relevant facts, in brief, are that respondent is a manufacturer of cotton yarn who export to various foreign countries. They engaged the services of foreign-based agents for the purpose of procuring orders and ensuring repatriation of sale proceeds. For the services rendered by the said foreign-based agents, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act which cannot be the basis for bonafide belief by the respondent in not paying the service tax as recipients and, therefore, the Commissioner (Appeals) was wrong in setting aside the penalty. 5. Learned advocate for the respondents submits that whatever service tax payable by them as recipient was eligible as CENVAT credit to them and, therefore, there could be no intention on their part to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Commissioner of Customs and Central Excise Vs Textile Corporation Marathwada Ltd., reported in 2008 (231) E.L.T.195 (S.C.). 6. I have carefully considered the submission from both sides and perused the records. The respondent is a manufacturer of yarn and are exporting to various countries. The claim of the respondent was that they were registered only for GTA services in Jan.'05 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontext of Revenue neutrality as the entire tax paid by them as recipient was available to them as credit. The respondents have not disputed the tax liability primarily on the ground that whatever service tax paid by them was available to them as credit. Under these peculiar facts and circumstances of the case, the view taken by the Commissioner (Appeals) in setting aside the penalty under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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