9911796707
TMI Blog2018 (11) TMI 976X X X X Extracts X X X X X X X X Extracts X X X X ..... r CENVAT Credit Rules, 2004. During the course of audit, it was found by the department that the assessee has taken irregular CENVAT credit to the extent of Rs. 42,750/- on some services he has also availed an excess amount of Rs. 4,452/- as credit on some other services over and above amount mentioned in the invoices. Show cause notice was issued to the appellant proposing to recover these two amounts along with interest and it was also proposed to impose a penalty under Section 78 upon the appellant. Several other amounts were also proposed to be recovered irregularly availed CENVAT credit. The appellant did not dispute irregular availment of CENVAT credit and had reversed the same along with interest except to the extent of the above two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest. Learned Counsel submits that there is no intention to evaded payment of duty and there was only a genuine mistake on behalf of the appellant and hence no penalty may be imposed on the appellant. However, he prays that the entire demand was based on the audit of the transactions already recorded in the books of accounts of the assessee and therefore as per the proviso to Section 78 as applicable during the relevant period only 50% of the service tax amount is liable to be imposed as a penalty and they may be given the benefit of this proviso. 5. Learned Departmental Representative agrees with the facts of the case narrated by the Learned Counsel and produces before the Bench a letter from the Office of the Commissioner of Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel for the appellant also agrees that the disputed amount had been utilized therefore interest is liable to be paid on the disputed amount. Insofar as the penalty under Section 78 is concerned, it is not in dispute that the appellant had wrongly availed CENVAT credit and utilized the same and thereby evaded payment of service tax and this was noticed only in audit records by the Departmental Officers therefore penalty is liable to be imposed under Section 78. However as these facts came into light only during the records already maintained by the appellant by in their books of accounts proviso of Section 78 as applicable during the relevant period applies in its full force and the penalty is liable to be reduced to 50% of the disputed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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