Appellant denied credit for input services, penalty waived, interest owed.

The appeal was dismissed, and the appellant was held not entitled to credit for input services during the relevant period. However, the penalty was set aside due to the appellant's bona fide belief, and interest has to be paid.

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The appeal was filed against Order-in-Appeal No. 63/2005-ST dated 22-3-2006. The appellant provided Cellular Phone Services and availed input services of Internet Operator. The Department denied credit of input service, but penalty was set aside due to appellant's bona fide belief. The appellants were held not entitled to credit during the relevant period, but interest has to be paid.

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