2015 (11) TMI 844

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.... known as Pace Marketing Specialities Limited. The present dispute relates to the liability of payment of penalty  for non payment of service tax on certain activities carried out by the appellant during the period April 2007 to March 2010. Two show cause notices were issued relating to the normal period and extended period of  limitation, covering the period April 2007 to March 2010 and April 2010 to 14.11.2010. The Adjudicating Authority was of the opinion that the activity undertaken by the appellant  was not a "job work" but falls under "Business Support Services"  defined under Section 65(104c) of the Finance Act 1994 (hereinafter referred to as Act) which, for facility, is extracted hereunder: "The supp....

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....e the Tribunal.  During the pendency of the appeal, the appellant moved an application for partial withdrawal of appeal, namely, the demand of service tax and interest for the normal period of limitation i.e for October 2009 to November 2010 was sought to be withdrawn.  It was specifically stated in paragraph-5 of the application that appellant's appeal may be confined to the following : SCN Period covered  Service Tax (Rs.)  Interest (upto 31/05/12) Penalty (Rs.) SCN dated 28/10/2010 Apri'2007 to Sep'2009 1,11,77,664 47,56,923 1,11,77,664 SCN dated 28.10.2010 Oct'2009 to Mar'2010 Nil Nil 20,15,752 SCN dated 18.3.2011 Apr'2010 to 14.11.2010 Nil....

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....Finance Act provides as under: 78. Penalty for suppressing value of taxable services.- (1) 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 of any of the provisions of this Chapter or of the rules made thereunder with intent to evade payment of service tax, the person, liable to pay such service tax or erroneous refund, as determined under sub-section (2) of section 73, shall also be liable to pay a penalty, in addition to such service tax and interest thereon, if any, payable by him, which shall be equal to the....

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....ount: Provided that in case where the service tax to be payable is increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, the benefit of reduced penalty under the second proviso to sub-section (1), shall be available, if the amount of service tax so increased, the interest payable thereon and twenty-five per cent. of the consequential increase of penalty have also been paid within thirty days or ninety days, as the case may be, of communication of the order by which such increase in service tax takes effect: Provided further that if the penalty is payable under this section, the provisions of section 76 shall not apply. Explanation.- For the removal of doubts, it i....