2016 (3) TMI 670

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....tegory of "Technical Testing and Analysis Services". They had taken Service Tax registration in April 2008. The Revenue's case is that though the Respondent have taken registration, they have not filed ST-3 returns and have not remitted the service tax collected from the customers to the Govt. exchequer except for a meagre sum which was paid by way of adjusting cenvat credit taken on the inputs. The adjudicating authority confirmed the demand of service tax alongwith interest, and imposed penalties, including penalties under Section 76 and 78 of the Finance Act, 1994. In the appeal filed before the Commissioner (Appeals), the Respondents have not contested the service tax liability or interest thereupon. However they contested levy of p....

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....mits that service tax has been demanded on the amount collected and received by the Respondents from their customers, and this amount includes the Service Tax component also. Therefore, the Respondents were duty bound to remit the service tax amount collected by them from their customers to the Government on due dates. He also contends that Respondents were aware of their responsibilities and obligations as they were a registered service tax assessee from April 2008. He also drew attention of the Bench to the fact that the Respondents were availing the CENVAT credit on the inputs received, which indicate that the Respondents were fully aware of the provisions and procedures. He therefore, strongly argued that the non-payment of service tax ....

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....od prior to 10.05.2008 also. He relied upon the decision of the Tribunal in the case of Jivant Enterprise vs. Commissioner of Service Tax, Ahmedabad - [2012] 27 taxmann.com 196 (Ahd. CESTAT). He also draw our attention to the amendment made in Section 78 of the Finance Act, 1994 from 01.4.2011 to the effect that penalty shall be reduced to 50% of the service tax not levied or paid, provided true and complete details of the transactions are available in the specified records. He submits that the show cause notice was issued on 30.08.2011 and therefore, these provisions may be considered as applicable, and the penalty may be reduced to 50%, as a worst case scenario. 4. On careful consideration of the arguments of both sides and perusal of ....