TaxTMI 
TaxTMI 
2010 (11) TMI 18
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.... mandatory limit?" 2. The assessee is a Security Agency and for the period from 16.10.1998 to 31.3.1999 and 1.4.1999 to 30.9.1999, the assessee filed its return and instead of making payment of service tax on the gross amount charged from the customers, the service tax was paid only on the service charges received by the assessee. Show cause notice was served on the assessee. Thereafter, demand of service tax was confirmed in addition penalty of the like amount vide order-in-original which was affirmed by the appellate authority. On further appeal, the Tribunal reduced the quantum of penalty to Rs.1.5 lacs from about Rs.6.5 lacs. 3. We have heard learned counsel for the parties. 4. Learned counsel for the revenue submits that penalty equ....
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....mputation of service tax. All facts were duly disclosed in the return. He submits that in these circumstances, quantum of penalty imposed by the Tribunal be not interfered with. 7. The finding recorded in the order-in-original is as under:- "In this particular case, the party was fully aware that under the existing law, the duty liability is to be discharged on the gross value of the services provided and not on the service charges alone. This is borne out by the party's contention that payment on the gross value imposes a discriminatory regime on the security agencies and the fact that the party is a petitioner in the writ at the Hon'ble P&H High Court on this issue. The party has deliberately withheld the true value of the taxab....
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....their ST-3 returns furnished only the figures of service charges. It was only later on that the assessee furnished the gross values of service for the purpose of levy of service tax for the relevant periods. It is also pertinent to note that they had with them no order from the High Court enabling them to pay service tax on service charges only during the pendency of the writ petition. In the circumstances non payment of service tax on components other than service charges, of the statutory gross value of services should be held to be deliberate. The finding of deliberate concealment of gross value of service recorded by the lower authorities appears to be well founded." 9. The assessee has not challenged the above finding by filing an app....