2011 (3) TMI 153

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....duction of penalty from Rs.3,14,842/- to 25% of the said amount by the Commissioner (A) and against setting aside the penalty of Rs. 5,000/- under Section 77.   2. Heard both sides.   3. The appellant-assessee is a manufacturer of textile made-ups and they are exporting the said goods to various countries. They have utilized the services of oversees agents for the purpose of procuring orders for export of goods and for ensuring repatriation of sale proceeds of exported goods. In that connection, they paid commission to the said agents. When the appellants were informed that as recipient of services, they were liable to pay service tax, they paid the entire amount of Rs. 3,14,842/- along with interest of Rs. 41,950/-. Thereaf....

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.... under:-   For all goods and services exported form India, services received/rendered abroad, where ever possible, shall be exempted from service tax. In view of the above, they were under the impression that no service tax was payable by them. However, on the department pointing out that they were required to pay, they promptly paid the service tax along with interest. There could have been no intention on their part to evade payment of tax as recipient of the said services, were entitled to take credit of entire amount of service tax paid by them. The service tax credit taken was also eligible to them as refund in as much as they are exporting the goods manufactured by them. Therefore, they have not contested the service tax liabi....