9911796707
TMI Blog2018 (5) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... 05 to February, 2009, on the ground that appellant has availed CENVAT credit before the payment of service tax to the Government of India. During the relevant period in question, appellant is required to discharge the service tax liability on the freight charges incurred by them under reverse charge mechanism; they were discharging the service tax liability and are eligible to avail CENVAT credit of such service tax. It was noticed during the scrutiny of records, that service tax liability for the month of April, 2005 on GTA Services was discharged by the appellant on 4th May, 2005 while they availed the CENVAT credit of such service tax credit on 30th April, 2005 itself and followed the same practice. Show cause notice was issued for rever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit so availed. It is also his submission that issue is Revenue Neutral as even if the credit is availed subsequent to the payment made by appellant, there is no loss to the Government. 5. Learned Departmental Representative reiterates the findings of the lower authorities. 6. On careful consideration of the submissions made, we find that the service tax liability on the GTA Services under reverse charge mechanism for the period in question is not disputed by both sides; as also the discharge of such service tax liability by the appellant. It seems that the appellant has availed such service tax credit before discharging the same to the Government of India. We find that the absence of any dispute that appellant has discharged the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in availing advance service tax credit prior to the payment of service tax of input service availed by them but ultimate credit is available to them in the next month. They are ready to pay interest for the intervening period. I agree with the above contention of the learned Advocate. The entire credit cannot be denied to them. Admittedly, the same stands availed premature and in any case was available during the subsequent period. In as much, as, the same is utilized by the appellant, interest in accordance with law is required to be paid. Taking a lenient view, I do not find it a fit case for imposition of penalty. 3. In view of the above, denial of credit and imposition of penalty is set aside. Interest as per law is confirmed." Fro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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