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TMI Blog2017 (11) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... MI 89 - MADRAS HIGH COURT] wherein Hon’ble Madras High Court has held that mere taking of credit would not compel the assessee to pay interest as well as the penalty - interest and penalty set aside - appeal allowed - decided in favor of appellant. - ST/20070/2015-SM - Final Order No. 22395/2017 - Dated:- 6-10-2017 - Shri S.S Garg, Judicial Member Mr. N. Anand, Advocate For the Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... how-cause notice dated 19.12.2012 was issued with a proposal for demanding irregularly availed credit along with interest and imposition of penalty. It was alleged that the show-cause notice that the appellants have availed input credit irregularly on service tax paid on construction service and renting service , which is beyond the purview of definition of input service under Rule 2(l) of CENVAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is also situated at a different location from their factory. He further submitted that they have availed credit on a bona fide belief that the credit is available to them. He further submitted that though they have availed credit but they have not utilized the same and they have already reversed the said credit before the issue of show-cause notice and also intimated the same to the department. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ras High Court has followed the Bill Forge decided by the Hon ble Karnataka High Court and has held that mere taking of credit would not compel the assessee to pay interest as well as the penalty. Further, the Larger Bench of the Tribunal in the case of JK Tyres and Industries Ltd.: 2016 (340) ELT 193 (Tri.-LB) wherein the Larger Bench has held that Bill Forge s decision of Hon ble Karnataka Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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