9911796707
TMI Blog2025 (2) TMI 1056X X X X Extracts X X X X X X X X Extracts X X X X ..... been paid by the appellant before the issue of show-cause notice along with interest of Rs. 1,27,119/-. The appellant has not litigated this amount at the lower appellate stage. Since the amount has been paid along with interest before the issue of show-cause notice, there are no reason to apply Section 78 provisions to impose the penalty on them. The penalty of Rs. 6,48,577/- in respect of this demand set aside. Quantification of CENVAT reversal - HELD THAT:- Revenue has taken the stand that the appellant is providing taxable service and they have paid Service Tax of Rs. 6,48,577/- towards the same after being pointed out by Audit team. In such cases, the appellant would be eligible for cenvat credit. Therefore, there are force in the sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he show-cause notice was issued, leading to the penalty under Section 78 being set aside. ii) The appellant should be eligible for cenvat credit. The matter was remanded to the adjudicating authority for a proper quantification of the cenvat reversal, considering the turnover of taxable services previously treated as exempt by the appellant. iii) The appellant's claim of having paid excess Service Tax in previous periods and seeking an adjustment was rejected by the Tribunal, emphasizing the need for proper refund claims under the Central Excise Act, 1944. The matter is remanded to the adjudicating authority. The adjudicating authority should follow the principles of natural justice and pass a considered decision within 4 months from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the quantification of cenvat credit reversal proposed at Rs. 1,68,825/-. They submitted that in respect of same services, when the Department takes a stand that they are not exempt service and demand is made for the Service Tax thereon, the cenvat credit in respect of such services cannot be denied to the appellant. However, the adjudicating authority went on to confirm the demand along with interest and imposed a penalty of Rs. 4,08,701/-, being 50% of the total confirmed Service Tax demand. Being aggrieved, the appellant filed an appeal before the Commissioner (Appeals). The Commissioner (Appeals) has held that since the Service Tax of Rs. 6,48,577/- along with interest of Rs. 1,27,119/- was already paid before the issue of show-cause not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9/-. The appellant has not litigated this amount at the lower appellate stage. Since the amount has been paid along with interest before the issue of show-cause notice, I do not find any reason to apply Section 78 provisions to impose the penalty on them. I fully set aside the penalty of Rs. 6,48,577/- in respect of this demand. 7. In respect of the second portion of demand of Rs. 1,68,825/-, I find that in some cases the Revenue has taken the stand that the appellant is providing taxable service and they have paid Service Tax of Rs. 6,48,577/- towards the same after being pointed out by Audit team. In such cases, the appellant would be eligible for cenvat credit. Therefore, I see force in the submissions of the appellant that while quanti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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