https://www.taxtmi.com/caselaws?id=217827 For the transitional period before 10.09.2004, credit on duty paid on capital goods was not available under the then-governing credit scheme; Rule 3 of the Service Tax Credit Rules, 2002 applied, limiting credit to input service tax in the same category as the output service, so the capital-goods credit claim was rejected. On penalty, reasonable cause was accepted because the assessee believed credit was available, so Section 80 of the Finance Act, 1994 justified waiver of penalty for the portion linked to admissible credit. For the remaining liability, reduced penalty was allowed on payment of tax, interest, and 25% penalty within the stipulated time. en-us Fri, 21 Sep 2012 00:00:00 +0530 Fri, 25 Jul 2014 11:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=217827 For the transitional period before 10.09.2004, credit on duty paid on capital goods was not available under the then-governing credit scheme; Rule 3 of the Service Tax Credit Rules, 2002 applied, limiting credit to input service tax in the same category as the output service, so the capital-goods credit claim was rejected. On penalty, reasonable cause was accepted because the assessee believed credit was available, so Section 80 of the Finance Act, 1994 justified waiver of penalty for the portion linked to admissible credit. For the remaining liability, reduced penalty was allowed on payment of tax, interest, and 25% penalty within the stipulated time. Case-Laws Service Tax Fri, 21 Sep 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=217827