TaxTMI 
TaxTMI 
2009 (6) TMI 71
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....otification No. 1/2006-S.T., dated 1-3-2006 provides that if the service provider avails Cenvat credit on capital goods and inputs and input services, such service provider will not be entitled for the benefit of abatement of 67% for the purpose of levy of Service tax. The respondents voluntarily reversed the entire Cenvat credit and interest thereon once it was pointed out to them that they cannot avail the benefit of Notification if they have availed the benefit of Service tax credit on the input services. However, impugned order has been passed whereby penalties have been imposed on the respondents. However, Commissioner (Appeals) set aside the penalties imposed on the respondents relying upon decision of Hon'ble Supreme Court in C....
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....Minerals Water (P) Ltd. [2004 (174) E.L.T. 422 (All.)]. Further, he also submits that the judgment of Hon'ble Supreme Court in Bombay Dyg. & Mfg. Co. case is not applicable to the present facts of the case. In that case it was submitted by the advocate on behalf of the respondents that the credit had never been utilized and based on this contention, the Hon'ble Supreme Court made the observation. This was not the ground on the basis of which the matter was decided by the Hon'ble Supreme Court in that case. The Hon'ble Court had not considered utilization of the credit or otherwise before reversal in detail and it was only an observation made on the submission of the advocate. 4. We have considered the submission made by both the....
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....cation would not be available on account of input duty credit and capital goods credit having been availed and utilized in the previous financial year, the appellant's right to claim the benefit of the Notification for the period first-above-mentioned stood restored to them with the above payment of duty subsequently made for the period second-above-mentioned (1997-98 & 1998-99). This contention is apparently supported by the decisions cited by learned counsel. In the case of Franco Italian Co. Pvt. Ltd. (supra) the Tribunal's Larger Bench allowed SSI benefit under Notification No. 1/93-C.E. to the assessee in respect of specified goods subject to the condition that the Modvat credit taken on the inputs utilized in the manufacture of such s....