TaxTMI 
TaxTMI 
2011 (7) TMI 995
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....he services of business auxiliaryprovided by the commission agents, the services of business auxiliary provided by Commission Agents become chargeable to service tax w.e.f. 9.7.2004. The appellants, however, while receiving the services of commission agent from abroad, were not paying any service tax on the same. In November, 2006, when the department initiated inquiries by calling for their balance sheets, it was found that they were availing services of procuring export orders from the commission agents in abroad since 2005 but they were not paying any service tax in respect of the same and had not even obtained service tax registration. It is in view of this, the show cause notice dated 18.04.2007 was issued to the appellants for - (a)&....
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.... the information regarding receipt of services of procuring orders from the commission agents abroad in their balance sheet, that initially since they were under impression that in respect of the services received from the commission agents abroad, they were not required to pay any service tax, they did not get service tax registration and they were not paying any service tax, that there was no intention to evade the service tax, which is clear from the fact that the information regarding receipt of services of foreign service providers was reflected in the balance sheet, and the same was provided to the department as soon as the department called for the same, that as soon as the department pointed out the non-payment of service tax, the a....
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....abroad to the department amounts to suppression of facts, and that in view of this, penalty has been rightly upheld under Section 78 of the Act. 5. I have carefully considered the "submissions from both the sides and perused the records. The only point of dispute in this case is as to whether the penalty under Section 78 of the Finance Act, 1994 would be attracted or not. 6. Under Section 78 of the Finance Act, 1994 penalty is imposable on person liable to pay service tax where any service tax has not been levied or paid or has been short levied or short paid or erroneously refunded, by reason of- (a) fraud; or (b) collusion; or (c) wilful mis-statement; or (d) suppression of facts or (e) contravention o....