2016 (1) TMI 1014

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....aying service tax on such "job work" charges till June 2007, but stopped discharging their liability even though they continued to bill their principals for service tax. Thereafter, they deposited Rs. 3,03,698/-, relating to dues for the period upto September 2007, on 18th June 2008 with no further payment till issue of notice on 2. M/s Mohtamaan Industries was served notice for tax liability of Rs. 19,89,174/- on service valued at Rs. 99,01,258/- for the period from July 2007 to June 2008. The sole defence of M/s Mohtamaan Industries was the financial difficulties faced by them. The original authority vide order dated 5th March 2010 confirmed the demand with interest and imposed penalty under sections 77 and 78 after acknowledging addit....

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....e appellant does machining of forged components of CNC machines and had been paying tax for a time on the consideration received from their principals. We find from the records that the appellant had applied for registration as provider of ''business auxiliary services"; rendering of job-work is one of the activities within its ambit. At no stage have they contended that this was a classification decided upon by tax authorities. Having registered themselves as a service provider and paid taxes as provider of "business auxiliary service" for a certain period, they are bereft of any ground to claim error in classification. In the event of a doubt regarding the taxability, the proper course open to appellant would have been to file a r....

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....y condonation of breach of responsibility to deposit taxes collected from recipient of service. We are ever mindful of the decision of the Tribunal in Ketan Engg. Services (P.) Ltd.'s case (supra). "5. It is observed from the facts available on record that the entire service tax payable was recovered by the appellant from the service recipients. Appellant was a registered unit and was well aware of their liability to pay service tax to the Revenue. Even if there was any financial difficulty, appellant was required to file the periodical returns indicating therein the correct service tax liability. Had the appellant filed such returns showing correct duty liability, which he had already recovered, may be appellant's bona fid....