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TMI Blog2013 (12) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal No. 86/2011 - ORDER NO. A/71002/2013 - Dated:- 16-8-2013 - DR. I.P. LAL, J. For the Appellant : Sri A.K. Biswas, Supdt. (A.R.) For the Respondent: Sri Debraj Sahu, Advocate JUDGEMENT Per DR. I.P. LAL Revenue has filed this appeal against the Order-in-Appeal No. 14/SH/CE (A)/GHY/10 dated 21.12.2010 passed by the Commissioner, Customs Central Excise (Appeals), Guwahati whereby the Commissioner (Appeal) has allowed the appeal of the Respondent and set aside the penalty of Rs.2,99,643/- imposed on the Respondent under Section 76 of the Finance Act, 1994. 2. Briefly stated facts of the case are that the Respondents are engaged in the manufacture of LM Coke. They are also registered with the Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h GAR-7 challan, accepting their mistake only after completion of the adjudication process. It indicates that their intention was not to make the payment voluntarily and therefore, the penalty imposed by the adjudicating authority under Section 76 of the Finance Act, 1994, ought to be sustained. 4. Learned Advocate for the Respondent has submitted that there was a bona fide mistake on the part of the Respondent in utilizing the CENVAT Credit availed on the GTA service (inward freight) in discharging their service tax liability towards the GTA service (outward freight) treating it as output service . The Respondent were not aware of the amendment that had been brought to the definition of output service and other provisions of CENVAT Cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon ble High Court of Gujarat in the case of CCE C, Daman Vs. PSL Corrosion Control Services Ltd. (2011 (23) STR 116 (Guj.) 6. In view of these facts, I find that the Respondent has established a reasonable cause for failure to pay the service tax during the period April, 2007 to March, 2008 through the GAR-7 Challan (although the said liability had already been discharged by debiting the Cenvat credit amount during the relevant period) and hence this is an appropriate case to invoke the provisions of Section 80 of the Finance Act. In these circumstances, the order passed by the Ld. Commr. (Appeal) is upheld and the appeal filed by the Revenue being devoid of merit is hereby dismissed. (Dictated and pronounced in the open court.) - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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