2013 (5) TMI 367

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....ese cases in brief, are that the appellants are engaged in manufacturing of excisable goods fallaing under Chapter 85 of CETA, 85. Appellants were receiving services of Marketing and Management Consultancy from foreign consultancy. As the Overseas consultants were not residents of India and were not having any office in India, the liability to pay service tax fell upon the Appellants, who were the service recipients in terms of the provisions of rule 2(d) read with rule 6 of the Service Tax Rules, 1994. The appellants during the period 2008-09 paid consultancy charges amounting to Rs.30,02,998.78/- on which they have not discharged their service tax liability to the tune of Rs.3,71,171/- on the value of taxable service of Rs.30,02,998.78/-.....

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....e amount of service tax liability along with interest after obtaining Service Tax Registration certificate. The penalty under section 78 not imposable as there was a clear bonafide doubt about the applicability of service tax, the penalty cannot impose. c) Any service tax paid by the appellants under the reverse charge is admissible as Cenvat credit as per the CBCE Circular No.345/1/2008-TRU dated 27.06.08. They finally requested to set aside the penalty imposed under impugned order, since service tax and interest have been paid off on being pointed out by audit party. 5. Aggrieved by such an order, the Revenue as well as the assessee preferred an appeal before the First Appellate Authority. On the assesses appeal, the First Appell....

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....and Dineshchandra R. Agarwal Infracon Pvt. Ltd. (2010 (18) STR 39 (Tri.-Ahmd.)]. 8. The ld. Additional Commissioner would submit that the Revenue neutrality as Cenvat Credit available cannot be a ground for non-payment of service tax and each and every situation cannot be termed as Revenue neutral situation. He would submit that in the case of Baba Asia Ltd. [2011 (267) ELT 115 (Tri.-Del.)] for this proposition. 9. I have considered the submissions made by both the sides and perused the records. The issue involved in this case is only as to the penalty imposed by the lower court and upheld by the First Appellate Authority. The appellant herein had discharged the service tax liability along with interest on receipt of the show-cause no....