9911796707
TMI Blog2022 (10) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... through cenvat credit will become refundable to them. Thus, the situation is definitely revenue neutral. Further, this amount was admittedly deposited by the service provider with interest. In view of the matter, this appeal is allowed and the demand of Rs.3,58,555/- is set aside. Further, in the facts and circumstances, penalty imposed under Section 78 is also set aside. Appeal allowed - decided in favor of appellant. - Service Tax Appeal No.51216 of 2022 (SM) - FINAL ORDER NO.51001/2022 - Dated:- 12-10-2022 - MR. ANIL CHOUDHARY, MEMBER (JUDICIAL) Shri G.G. Gupta, Advocate for the appellant Shri Divey Sethi, Authorised Representative for the respondent ORDER The appellant is registered with the Service Tax Depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit of the same being input credit for the receipt of the manpower services utilized for rendering the taxable output services. 3. In reply to the show cause notice, the appellant informed that they have received the services from Nagendra Mishra on the basis of labour rate. Further, Nagendra Mishra paid the said tax amount with interest to the exchequer. So far the work done through their sub-contractor, M/s. Nadia Enterprises, they have deposited the differential service tax of Rs.64,521/-. The show cause notice was adjudicated vide order-in-original dated 30.09.2020 and proposed demand confirmed denying the benefit of cenvat credit and appropriation of Rs.64,520/- was allowed and further, interest was demanded of Rs.5759 and penal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the court below is not in error in observing that the credit of the amount of Rs.3,58,555/- was not available on 31.03.2013. However, in view of the transitional provisions under CGST Act, I find that if the appellant is required to deposit the said amount again in cash, the amount of tax adjusted earlier through cenvat credit will become refundable to them. Thus, the situation is definitely revenue neutral. Further, this amount was admittedly deposited by the service provider with interest. In view of the matter, I allow this appeal and set aside the demand of Rs.3,58,555/-. Further, in the facts and circumstances, penalty imposed under Section 78 is also set aside. Thus, the appeal is allowed with consequential benefits. [order dictate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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