2011 (4) TMI 250

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.... but it is alleged that he has not paid the service tax on the consultancy portion of the work, irregularly utilized service tax credit to the tune of Rs.1,04,875/- availed service tax credit to the tune of Rs.85,185/- wherein there were no documents and did not pay service tax to the tune of Rs.7,53,276/-on the services received from foreign service providers during the period 06/08/2003 to 30/04/04. Coming to such conclusion, show-cause notice dt. 30/06/2005 was issued to the appellant. Appellant agitated the show-cause notice before the adjudicating authority. The adjudicating authority after considering the submissions made, came to the conclusion that the demands raised in the show-cause notice need to be confirmed and he confirmed the....

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....ppellant has been taking a stand right from the audit objection, that the services which were availed are not utilized for the purpose of rendering services of exempted or non-taxable services. It is his submission that the adjudicating authority has not gone into detail and has not recorded any finding. As regards the credit of Rs.85,185/-, it is his submission that they have documentary evidences to show that the service tax liability has been discharged by the architect and interior designers. It is his submission that the amounts which have been paid by the appellant to the architect and interior designers were on a running bill account and on the completion of the contract, the architect and / interior designers have discharged the ser....

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....regoing judicial pronouncements, we are of the considered view that the impugned order to the extent it confirmed the demand, iposed penalties and sought interest as the tax confirmed on the appellant on this count is liable to be set aside and we do so.   7. As regards the confirmation of demand of Rs.1,04,875/- and Rs.85,185/-, we find that the appellant has been taking a consistent stand before the adjudicating authority that the input stage service tax credit availed of Rs.1,04,875/- is for only providing taxable output services. The relevant portion of the reply to the show-cause notice clearly indicates that the said stand has been taken by the assessee. Unfortunately, the adjudicating authority has not given any findings on s....