2016 (5) TMI 900

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....r the Respondent : Shri. S.R. Nair, Examiner (A.R.) ORDER PER : RAMESH NAIR This appeal is directed against Order-in- Original No. 04/ST-VII/RS/2015 dated 20/1/2015 passed by the Commissioner of Service Tax-II, Mumbai wherein Ld. Commissioner confirmed demand of Rs. 11,66,645/- for the period April, 2008 to March, 2012 and also ordered recovery of interest under Section 75 of the Finance ....

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...., 2004 according to which either they were suppose to pay an amount equal to 8% or 6% or 5% (as prevailing from time to time) of the value of exempted services as specified in sub rule (3A) of Rule 6 of CCR, 2004. In view of the non observance of the procedure as laid down under Rule 6, show cause notice was issued and same was adjudicated wherein Ld. Commissioner confirmed the demand and imposed ....

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....) on trading sale, the appellant have reversed the credit at the material time. However when issue become clear the appellant have paid entire amount of Cenvat credit of Rs. 11,66,645/- alonwith interest. In view of this position of law there was no malafide intention on the part of the appellant, therefore penalty under Section 78 should not have been imposed as reasonable cause has been shown fo....

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....s non taxable activity i.e. Trading Activity. I find that prior to 31/3/2011 there was no clarity whether the Cenvat credit in respect of services used for trading activity is required to be reversed or otherwise. Trading activity is included in the exempted services w.e.f. 1/4/2011 since then appellant was reversing the credit attributed to the Trading Activity. However for the period before 31/3....