2015 (10) TMI 2159

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... by them from their associate companies situated abroad for advice received in the area of operations, purchasing, quality, sails and commercial, human recourses, finance, marketing, supply, information system & information technology and legal advice as a package. The appellant had paid an amount as consideration, to the associates for the services received by them which according the Revenue falls under the category of Management or Business Consultancy. The appellant during the investigation has discharged the entire service tax liability and also the interest. 4. Learned counsel would submit that the appellant has discharged the entire service tax liability and interest, in praying for setting aside the penalties imposed by the adjudic....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ischarged. The appellant could have taken the credit of service tax paid under Reverse Charge Mechanism, is undisputed, in view of the forgoing, we find that in this case the penalties imposed are unwarranted and provisions of section 80 should have been invoked by the adjudicating authority for non-imposition of penalties. We find that this tribunal in case of Essar Steel Ltd. (supra) on similar set of facts held as under. "M/s. Essar Steel Ltd. had availed External Commercial Borrowings to the extent of US $ 120 million, $ 70 million and $ 190 million in Nov 2006, Feb 2007 and Sep 2007 respectively from non-resident lenders, who do not have any office in India and had paid certain fees/charges for arranging ECB. There is no dispute that....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he drew our attention to Section 73(3) of Finance Act, 1994 which provides that where service tax is paid before issue of notice, the Central Excise officer shall not serve any notice. He also cited decision of the Hon'ble Supreme Court in the case of Coca Cola India Pvt. Ltd. reported in 2007 (213) E.L.T. 490 (S.C.) in support of his contention that when the exercise is Revenue neutral, no purpose would be served in going into classification and other issues. He submits that this case is very relevant to the issue. On the other hand, ld. SDR on behalf of the Revenue submits that Revenue neutrality is not only criterion and what is required to be looked into is liability. He also submitted that the appellant's explanation of lack of coordin....