2018 (8) TMI 1176

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....006 and at the same time they availed Cenvat credit in respect of some input services for a small amount of Rs. 19,576/-. The department denied the exemption notification on the ground that they have availed Cenvat credit hence, they have contravened the condition of notification. 2. Shri Shailesh Vyas, ld. Advocate appearing on behalf of the appellant submits that the appellant have reversed the credit availed by them along with interest and therefore, they are entitled for exemption notification. He placed reliance on the judgment of this Tribunal in the case of Punjan Builders vs. CCE, Vadodara vide order No. A/11614/2015 dated 05.11.2015. 3. Ld. AR appearing on behalf of the Revenue reiterated the findings of the impugned order. ....

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....facie intention to evade payment of Service Tax. Further, they had contravened the provisions of Notification No.1/2006-ST, dt.01.03.2006 inasmuch as they had wrongly availed the CENVAT Credit of Service Tax paid in respect of input services. But once they came to know the mistake3 they have reversed the CENVAT Credit taken on input services along with interest. As the Service Tax is a new levy and there being no prima facie malafide intention on the part of the assessee, it appears that it would be improper to deny the benefit of abatement as provided under Notification No.1/2006-ST, dt.01.03.2006 to the assessee in view of the factual position that wrongly availed CENVAT Credit has been paid by the assessee along with interest we....

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.... after 15 months when it claimed refund of MODVAT Credit. In the case of Eagle Flask, it was held that for availing the benefit under notification, the conditions have to be strictly complied with and therefore exemption from operation of Rule 174 (rule requires declaration to be filed) was not available to the appellant. On the other hand, in the case of Chandrapur Magnet Wires Pvt. Ltd. (Supra), it was held in Para 7 as under: 7. In view of the aforesaid clarification by the Department, we see no reason why the assessee cannot make a debit entry in the credit account before removal of the exempted final product. If this debit entry is permissible to be made, credit entry for the duties paid on the inputs utilised in manufacture o....