2017 (9) TMI 75

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..... Ltd. [2011 (2) TMI 6 - Supreme Court], relied upon where it was held that if the Cenvat credit availed by the assessee wrongly but same has been reversed before utilization of the same, no interest is payable by the assessee. Penalty - Held that: - appellant is a Central Public Sector Undertaking, no charge of allegation of suppression can be made against the appellant - penalty set aside. Appeal .....

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..... upply Agencies were appointed by the appellant for deploying semi-skilled and skilled contract labour both in the township/hospitals as well as in the factory for carrying out various operations. The appellant, however, took Cenvat credit of the lump-sum amount of service tax as per the invoices supplied by manpower supply agencies. Department was of the view that the appellant will not be entitle .....

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..... pellant has maintained minimum credit balance of over ₹ 1 crore in the Cenvat credit account, it is evident that the wrongly taken Cenvat credit was never utilized. No interest will be payable since the credit has been reversed without utilization. He further submitted that there is no justification for imposition of penalty on the appellant, in view of the fact that no motives can be attrib .....

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..... of interest is already well settled in various decisions. 5. We find that in the appellant's own case for the earlier period, vide Final Order No.A/54535/2014 dated 27.11.2014; this Tribunal has decided that interest is not payable by the appellant relying on the decision of Hon'ble Apex Court in the case of Bombay Dyeing & Mfg. Co. Ltd. [2007(215) ELT 3 (SC)]. Further, we find that the issue has .....

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..... matter of much litigation. During the period in question there were decisions by various judicial firms taking either view. The issue came to be settled only much later. In view of this fact and also the fact that appellant is a Central Public Sector Undertaking, no charge of allegation of suppression can be made against the appellant. Consequently, the penalty imposed is by the Adjudicating Autho .....

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