02 January 2017
An assessee has registered under Repairs & Maintenance service. He received DG Set (Generator) on rent & give the same on rent to others. Taking Cenvat credit on input service & charging Service tax on output service of renting of DG Set.
He has paid Service Tax fully after deducting credit under repairs & maintenance service.
Department is imposing penalty and interest as assessee has not paid service tax under proper service head.