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TMI Blog2024 (7) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... would be admissible as CENVAT Credit? HELD THAT:- Taking note of the fact that Appellants are a public sector undertaking, amounts demanded as service tax will be admissible to the Appellants will be admissible to them as CENVAT Credit and the provisions of Section 80 of the Finance Act, 1994, Though the penalties under Section 76, 77 78 are imposable, they should be waived by the application of Section 80. The CESTAT has not only considered the fact that respondent/assessee was a public sector undertaking but has also kept in mind that if the service tax had been paid, respondent would have been entitled to take credit of the amounts paid, the net effect being it would have been revenue neutral. It is for that reason, the CESTAT set aside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be admissible as CENVAT Credit? 2. Respondent, a Government of India undertaking, is stated to have availed many services including those of consulting engineers from foreign residents on which according to Department respondent is liable to pay service tax on reverse charge basis. It is Revenue s case that respondent did not pay the service charge. During the course of audit undertaken, it was observed that the services that respondent received were liable to service tax under the category of consulting engineering services as defined by Section 65 (105) (g) of the Finance Act, 1994. Since the service provider was located outside India and was not having any permanent establishment or office in India, respondent as service receiver, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explanation that there was a reasonable cause for non payment. The relevant portion reads as under : 4.10. Now coming to the issues in relation to penalties imposed on the Appellant. There cannot be any dispute to effect that by not making proper declaration and disclosures to the concerned authority, appellant have contravened the provisions of Finance Act, 1994 and the Rules made themselves. For such contraventions they are liable to penalty as provided under Section 76, 77 78 of Finance Act, 1994. However we also note that Appellants are a Public Sector Undertaking, and Section 80 of Finance Act, 1994 provides as follows: 80. Notwithstanding anything contained in the provisions of Section 76, Section 77, Section 78 or Section 79, no pen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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