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TMI Blog2009 (7) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... f both dutiable and exempted products and since they have not maintained separate accounts, they were liable to pay duty @10% in respect of exempted products cleared by them. The appellants have taken credit of service tax in the month of December 2005 and have reversed the entire amount of Rs. 86,665/- in March 2006 – held that - by availing the credit in December 2005, the appellant has committe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w cause notice was issued to the appellant stating that they have availed credit on inputs services viz, goods transport services in respect of both dutiable and exempted products and since they have not maintained separate accounts, they were liable to pay duty @10% in respect of exempted products cleared by them. The appellants have taken credit of service tax in the month of December 2005 and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken by mistake and on detection they themselves reversed the entire credit in March 2006. Therefore, once they have reversed the credit, the question of payment of duty and penalty does not arise at all. 7. He placed reliance on Ruchi Infrastructure Ltd. v. CCE, Visakhapatnam 2008 (224) E.L.T. 123 (Tri.-Bang.) wherein it was held that "credit had been reversed after the goods were cleared, howev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount of credit. If that was the option, the same had to be enforced by the department. The department cannot change or and alter the option by directing 8% recovery on the grounds as arrived at in this order now impugned before us. We would therefore set aside the order". 9. He further placed reliance on Habib Agro Industries v. CCE, Mysore 2007 (219) E.L.T. 489 (Tri.-Chennai) wherein it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 find that the appellant has paid the service tax in February 2005 but they have wrongly taken the credit in December 2005 and the entire credit was reversed by them in March 2006 and the question of payment of 10% of duty on the exempted goods does not arise. 14. 1 find that by availing the credit in December 2005, the appellant has committed an error and for the same the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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