TaxTMI 
TaxTMI 
2018 (9) TMI 1451
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.... Tax Department as provider of service under the category of 'Supply of Tangible Goods Service' falling under Section 65(105)(zzzj) of the Finance Act 1994. The Department conducted the audit of the assessee for the period from June 2008 to September 2011 and raised several objections. Thereafter on the basis of objections in the audit report, a show-cause notice was issued alleging that service tax liability of Rs. 6,69,088/- (Rupees Six Lakhs Sixty Nine Thousand and Eighty Eight only) due for the quarter ending September 2011 was not paid and on pointing out it was paid vide challan dated 09.01.2012 and the return was filed on 31.01.2012. Further the appellant were also due with service tax liability of Rs. 6,53,638/- (Rupees Six Lakhs Fi....
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....f reversal of cenvat credit on capital goods of Rs. 5,55,648/- (Rupees Five Lakhs Fifty Five Thousand Six Hundred and Forty Eight only) and upholds the demand for Rs. 1,78,804/- (Rupees One Lakh Seventy Eight Thousand Eight Hundred and Four only) citing not a valid document under Rule 9 of Cenvat Credit Rules, 2004. Further demands interest of Rs. 83,720/- (Rupees Eighty Three Thousand Seven Hundred and Twenty only) for early utilization of cenvat credit and also imposes penalty of Rs. 10,000/- (Rupees Ten Thousand only) under Section 77(2) and Rs. 10,000/- (Rupees Ten Thousand only) under Section 77(1)(c) (i) and also imposes mandatory penalty of Rs. 13,22,726/- (Rupees Thirteen Lakhs Twenty Two Thousand Seven Hundred and Twenty Six only) ....
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....earned counsel further submitted that the entire tax with interest was paid before the issuance of show-cause notice and therefore the respondents should not have issued the show-cause notice in view of the decision of the jurisdictional High Court in the case of M/s. Adecco Flexione Workforce Solutions Ltd. reported in 2012 (26) S.T.R. 3. He further submitted that the stock transfer consignment note issued by the manufacturer to its dealer which is the basis for availing the cenvat credit is a valid document and the document establishes the transit sale character and hence the credit is admissible. He further submitted that the stock transfer consignment note and the commercial invoice provides the chassis number of the motor vehicle and a....
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.... from the Department. He further submitted that the Commissioner (Appeals) has rightly relied upon the decision of the Karnataka High court in the case of CC V. Jindal Vijayanagar Steel Ltd. reported in 2017 (346) E.L.T. 378 (Kar.) which was affirmed by the Apex Court in 2017 (346) ELT A138. To counter this argument, the learned counsel for the appellant submitted that this decision is not applicable in the facts and circumstances of the case as in this case the issue of imposition of mandatory penalty was under the Customs Act which did not have parimateria provision as in the case of Section 73(3) of the Finance Act at the relevant point in time. He further submitted that there is a specific provision under the Finance Act 1994 to conclud....