2018 (11) TMI 160 – CESTAT CHENNAI – TMI – Demand of interest and penalty – appellant has reversed the credit even before issuance of the SCN – Held that:- The appellant has reversed the credit even before issuance of the show cause notice. It is also not the case of the department that they have utilized the credit – the demand of interest and penalty cannot sustain – duty demand upheld – appeal allowed in part. – Appeal No. E/41886/2018 – Final Order No. 42749/2018 – Dated:- 1-11-2018 – Ms. Sulekha Beevi C.S., Member (Judicial) Shri G. Thangaraj, Consultant for the Appellant Shri L. Nandakumar, AC (AR) for the Respondent ORDER Brief facts are that on verification of accounts of the appellant, it was noticed that in the balance sheet of t
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it and had sufficient balance of credit during the disputed period. Since the appellant has reversed the credit before utilization, he prayed that the interest and penalty may be waived. He relied upon the decision in the case of Strategic Engineering P. Ltd. – 2014 (310) ELT 509 (Mad.) and Tata Business Support Services Ltd. Vs. Commissioner of Service Tax – 2017 (52) STR 346. 3. The ld. AR Shri L. Nandakumar supported the findings in the impugned order. 4. After hearing both sides, it is seen that the appellant has reversed the credit even before issuance of the show cause notice. It is also not the case of the department that they have utilized the credit. Following the decision of the Hon ble High Court of Madras in the case of Strategi
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