2016 (3) TMI 1132

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....e appellant assessee was allowed in part and the appeal of the Revenue was also allowed increasing the penalty under Section 76 of the Finance Act/1944 to Rs. 1,94,322/-.  2. The issues involved in this Appeal are: (a) Whether the non disclosure of the CENVAT Credit entitlement in the service tax return is fatal to the eligibility for the benefit of CENVAT Credit when due to imperfect understanding in the early stages of availing CENVAT Credit for the first time ST-3 return was not correctly filled in (Amount involved being Rs. 1,94,322/-) Showing the CENVAT Credit availed details. (b) Whether Cenvat credit can be disallowed on the input service of catering service used while providing Banking and Financial services by the appellant....

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....n the Balance-Sheet for the financial year 2006-07- to 2010-11 total difference of service tax comes to Rs. 69,400/- accordingly show cause notice was issued dated 4/10/2012 for the extended period proposing to adjudicate and recover service tax short paid and also for disallowing Cenvat credit availed on catering service Rs. 48,815/- along with interest and further penalty was proposed under Section 76 of the Finance Act, 1994 and also under Rule 15 of Cenvat credit Rules. 4. The appellant assessee contested the show cause notice by filing reply bringing to the notice that there was clerical error in reflecting the gross turn over and Cenvat credit in the Service Tax returns, they being new to service tax provisions and practice It was de....

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....ore the Commissioner (Appeals). The Revenue also preferred appeal before the Id. Commissioner (Appeals) for enhancement of penalty under Section 76 to 100% from the level of 50%, imposed by the adjudicating authority. Vide the impugned order the Commissioner (Appeals) allowed adjustment of Rs. 32,987/-, which was paid in excess as on 31/3/2007 but disallowed the Cenvat credit and modified the demand reducing it to Rs. 1,94,322/-. Allowing the Revenue's appeal the ld. Commissioner (Appeals) increased the penalty 100%, that is to Rs. 1,94,322/-. So far the disallowance of Cenvat credit on catering service is concerned, the same was upheld. Being aggrieved the appellant assessee is in appeal before the Tribunal. 6. The Counsel for the app....