If upon a misconception of the legal position, the assessee had paid the tax which he was not liable to pay, then availing Cenvat credit of the same cannot be termed as illegal.

If upon a misconception of the legal position, the assessee had paid the tax which he was not liable to pay, then availing Cenvat credit of the same cannot be termed as illegal. https://www.taxtmi.com/article/detailed?id=6545 Where a taxpayer, under a misconception of law, paid tax not actually payable and was eligible for input relief, using that relief as Cenvat credit cannot be treated as illegal. In the described case a manufacturer utilised Cenvat credit against service tax claimed on GTA services for a period when no liability existed; the department issued a show cause notice for recovery, interest and penalty. The court held that availing the credit in such circumstances is not unlawful and cannot justify penal measures absent evidence of misuse or deliberate illegality. en-us Fri, 27 Nov 2015 10:58:43 +0530 Fri, 27 Nov 2015 10:58:43 +0530 TaxTMI RSS Generator If upon a misconception of the legal position, the assessee had paid the tax which he was not liable to pay, then availing Cenvat credit of the same cannot be termed as illegal. https://www.taxtmi.com/article/detailed?id=6545 Where a taxpayer, under a misconception of law, paid tax not actually payable and was eligible for input relief, using that relief as Cenvat credit cannot be treated as illegal. In the described case a manufacturer utilised Cenvat credit against service tax claimed on GTA services for a period when no liability existed; the department issued a show cause notice for recovery, interest and penalty. The court held that availing the credit in such circumstances is not unlawful and cannot justify penal measures absent evidence of misuse or deliberate illegality. Articles Service Tax Fri, 27 Nov 2015 10:58:43 +0530 https://www.taxtmi.com/article/detailed?id=6545