2015 (11) TMI 1347

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.... Rs. 1,03,59,857/- and the same was appropriated against amount of Rs. 1,04,20,262/- and interest thereupon of Rs. 37,41,679/- already paid on 29/11/2010 and 31/3/2011. Penalty of Rs. 2000/- under Rule 15(3) of the CCR, 2004, penalty under Section 76 and penalty of Rs. 5000/- under Section 77(I)(b) and 77 (2) of Finance Act, 1994 were also imposed. 2. The facts of the case is that the appellant are holding Service Tax Registration for rendering 'Scientific and Technical Consultancy Services' classifiable under Section 65(105)(za) of Finance Act, 1994. M/s. Indian Institute of Technology (IIT), Mumbai (M/s., IIT) had been filing prescribed ST-3 Service Tax returns. The appellant had been availing Cenvat credit on the inputs such as Rent....

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.... is paid. The present issue is only in respect of availment of Cenvat credit on input services. He submits that since IIT performs various activities, it is practically very difficult to maintain a separate account to ascertain which services and how much proportion of the services are used for taxable activity and how much and which services are used for exempted services and due to this difficulty the appellant availed Cenvat Credit on the input services which either not used in the taxable services or used in the exempted services. It is his submission that appellant have been submitting the entire details of availment of Cenvat credit on input services and nothing was suppressed. The mistake occurred only due to accounting difficulty an....

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.... such situation it cannot be said that the appellant are ignorant of Cenvat credit provisions therefore reasonable cause was not shown for waiver of penalty. 5. We have carefully considered the submissions made by both sides. 6. Though the appeal was filed for setting aside the order but Ld. Counsel by instruction of the appellant fairly concede that they are not contesting the demand of Cenvat Credit and interest thereof which have already been paid and same was appropriated by the Adjudicating authority. Now the issue is confine to penalties imposed under various provisions. From the facts of the case, we find that the appellant M/s. IIT is reputed Technical Education Institute of Government of India, therefore, there cannot be malafide....