SPIC SMO Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) FOR the reasons recorded below, we waived predeposit of penalty of Rs. 30 lakhs imposed upon the assessees herein for wrong availment of CENVAT credit during the period April 2007 to March 2008 and proceed to hear and decide the appeal itself at this stage with the consent of both sides.

(2.) THE service tax amount of Rs. 1,24,36,820/ - utilized by the assessees during the period in dispute has been reversed on 30.4.08 prior to the issue of show -cause notice dt. 21.7.08. In these circumstances, the provisions of Section 73(3) of the Finance Act, 1944 are attracted so as to hold that assessees are not liable to any penal action. Section 73(3) reads as under: