https://www.taxtmi.com/caselaws?id=446392 The CESTAT Kolkata allowed the appeal, setting aside service tax demands and penalties. The tribunal held that where service tax with interest was paid before show cause notice issuance, no penalty was imposable under Section 73(3) of Finance Act, 1994, absent evidence of fraud or suppression. For demands based on rate changes, the tribunal ruled that services provided before rate revision would attract the earlier rate regardless of payment timing. Regarding subcontractor liability, while acknowledging the Board circular clarifying liability, the demand was barred by limitation as the show cause notice was issued beyond the normal period without evidence of suppression. The tribunal also held that payment of 2% of gross amount constituted valid exercise of composition scheme option despite absence of statutory format. en-us Thu, 30 Nov 2023 00:00:00 +0530 Thu, 28 Mar 2024 15:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446392 The CESTAT Kolkata allowed the appeal, setting aside service tax demands and penalties. The tribunal held that where service tax with interest was paid before show cause notice issuance, no penalty was imposable under Section 73(3) of Finance Act, 1994, absent evidence of fraud or suppression. For demands based on rate changes, the tribunal ruled that services provided before rate revision would attract the earlier rate regardless of payment timing. Regarding subcontractor liability, while acknowledging the Board circular clarifying liability, the demand was barred by limitation as the show cause notice was issued beyond the normal period without evidence of suppression. The tribunal also held that payment of 2% of gross amount constituted valid exercise of composition scheme option despite absence of statutory format. Case-Laws Service Tax Thu, 30 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446392