9911796707
TMI Blog2015 (9) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... lf and not by way of availability of credit to anyone else. Therefore the case of Jay Yushin Ltd [2000 (7) TMI 105 - CEGAT, COURT NO. I, NEW DELHI] applies in the present situation after considering the guidance drawn by the Supreme Court in the case of KitPly Industries (supra). In this view of the matter, as the entire exercise is revenue neutral we find that mens rea is not established for imposition of penalties. - As the duty stands paid and credit of duty paid is admissible, the impugned order is set aside to the extent of recovery of interest and imposition of penalties. - Decided in favour of assessee. - Appeal No. ST/341/10-Mum - Final Order No. A/1334/2015-WZB/STB - Dated:- 26-5-2015 - M V Ravindran, Member (J) P S Pruthi, Mem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax was paid by them on 04.02.2010 before the passing of the adjudication order. He stated that the entire exercise is revenue neutral because service tax paid becomes available immediately to them as Cenvat credit. Therefore demand is not sustainable for extended time period and penalty is not imposable in the absence of intention to evade payment of service tax. He relied on the Tribunal judgements in the case of Jay Yushin Ltd 2000 (119) ELT 718 (T-LB) and the case of British Airways 2014 (36) STR 598 (T). The alternate submission is that service tax, in any case, is exempted on transactions undertaken with IFC (International Finance Corporation) because proviso (c) of section 3 of the IFC Act does not impose any restriction on service t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is found to have been misused(in contradistinction to mere deviation or failure to observe all the conditions) the existence of an alternate scheme would not be an acceptable defence: (c ) With particular reference to Modvat scheme (which has occasioned this reference) it has to be shown that the Revenue neutral situation comes about in relation to the credit available to the assessee himself and not by way of availability of credit to the buyer of the assessee's manufactured goods; (d) We express our opinion in favour of the view taken in the case of M/s. Internation Auto Products (P) Ltd. and endorse the proposition that once an assessee has chosen to pay duty, he has to take all the consequences of payment of duty. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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