Dear Sir's,
SCN was issued against a company for non payment of service tax on a RCM transaction. The company deposited entire ST and claimed CENVAT credit in 2010. However demand was confirmed along with interest and penalty. The company preferred an appeal for tax, interest and penalty which is pending before CESTAT on 30.06.19.
Can the company take relief under LDRS scheme for interest and penalty?
Also, whether the company needs to reverse the CENVAT already claimed?
Regards.
Company Can Get 100% Relief on Interest and Penalty Under LDRS Scheme; No CENVAT Reversal Required A company faced a service tax issue due to non-payment on a reverse charge mechanism (RCM) transaction, leading to a demand for tax, interest, and penalty. The company appealed to CESTAT and inquired about relief under the LDRS scheme for interest and penalty, and whether CENVAT credit needs reversal. Respondents advised that the company could receive 100% relief on interest and penalty, with no refund of excess tax paid. They suggested filing a declaration under the scheme, withdrawing the appeal, and clarified that no CENVAT reversal is needed as the tax was paid before the scheme's introduction. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
