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TMI Blog2017 (4) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER The appellant is in appeal against the impugned order wherein Cenvat credit on GTA service for transportation of goods from the factory of the appellant to the buyers has been denied by the lower authorities. 2. The facts of the case are that during the period March, 2010 to December, 2010, the appellant paid the service tax on goods transported to the buyers and availed the Cenvat cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Karnataka High Court's decision in Bill Forge Pvt. Ltd. [2012 (26) S.T.R. 204 (Kar.) = 2012 (279) E.L.T. 209 (Kar.)]. He further submits that as the appellant was in doubt whether they are entitled to avail Cenvat credit on outward transportation agency service or not, therefore, penalty on the appellant is not imposable. In the alternative, he submits that as the entire duty demand stands paid, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp;For the demand of interest, the learned AR submits that as held in the case of Ind-Swift Laboratories Ltd., the appellant is liable to pay interest on whole of the inadmissible Cenvat credit amount availed. In the case of Bill Forge, the Hon'ble Karnataka High Court has taken note of the decision of Hon'ble Apex Court in Ind-Swift Laboratories Ltd. [2011 (265) E.L.T. 3 (S.C.)] (supra) and there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessable value. Therefore, the appellant is not entitled to avail Cenvat credit on the transportation charges. In these circumstances, the penalty is imposable on the appellant. 10. Further, I find that appellant has paid the amount of Cenvat credit before adjudication. Therefore, as per the proviso to Section 11AC of the Act, the penalty can be imposed only up to 25% of the duty. Acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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