2018 (8) TMI 1497 – CESTAT CHENNAI – TMI – Liability of Interest and penalty – On being pointed out about the mistake, the credit, having been reversed before utilization – Held that:- The appellant has reversed a substantial portion of the irregularly availed credit to the tune of ₹ 1,70,290/- along with interest before the issuance of the Show Cause Notice. A small differential amount of ₹ 6,296/- was also reversed by them after passing of the order in original – It is also brought out that the appellants had sufficient credit balance and the wrongly availed credit was reversed before utilization.
–
Interest and penalty set aside without disturbing the confirmation of demand or interest already paid – appeal allowed in pa
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
st and penalties imposed. Aggrieved, the appellants are now before the Tribunal. 2. On behalf of the appellant, the learned Counsel, Shri V. S. Manoj, submitted that the appellant had reversed the credit of ₹ 1,70,290/- along with interest much before the issuance of the Show Cause Notice. There was a balance of ₹ 6,296/- which was reversed after the issuance of the order in original. Thus, the appellant has reversed the entire credit along with interest. On being pointed out about the mistake, the credit, having been reversed before utilization, he argued that there is no interest liability or penalties. He relied upon the decision in the case of Strategic Engineering Pvt. Ltd., (2014) 310 ELT 509 Madras, as well as the decisio
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
gic Engineering Pvt. Ltd. (supra) would be applicable. I, therefore, find that the penalty imposed is unwarranted and requires to be set aside, which I hereby do. The learned Counsel submitted that they are not liable to pay the interest on the differential amount of ₹ 6,296/- as per the decision of the Strategic Engineering Pvt. Ltd. (supra). 6. The impugned order is modified to the extent of setting aside the penalty and the demand of interest or the amount of ₹ 6296/- only without disturbing the confirmation of demand or interest already paid. Appeal allowed in above terms, with consequential reliefs, if any. (Dictated and pronounced in open Court) – Case laws – Decisions – Judgements – Orders – Tax Management India – taxma
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =