2008 (2) TMI 83

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....alties @ 100/- per day under Section 76; Rs. 1000/- under Section 77 and Rs. 6,45,231/- (the amount equal to the Service Tax and the Education Cess) under Section 78 were also imposed.   The appellant was also directed to pay interest at the appropriate rate on delayed payment of Service Tax in terms of Section 75 of the Act.  2. The appellant is a clearing & forwarding agent (hereinafter referred to as "C&F Agent") within the meaning of Clause (25) of Section 65 of the Finance Act, 1994 (hereinafter referred to as 'Act').  It is not in dispute that the services provided by a C&F Agent is a "taxable service" within the meaning of sub-clause (j) of Clause (105) of Section 65 of the Act.  The appellant, indeed, doe....

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.... was submitted that unless payment is actually received by the service provider, there is no occasion for making payment of Service Tax in terms of Rule 6(1) of the Service Tax Rules, 1994.  4. Section 66 of the Act provides for levy of Service Tax on the value of "taxable services" referred to in various sub-clauses of Clause (105) of Section 65 to be collected in such manner as may be prescribed.  Section 68 deals with payment of Service Tax.  Sub-section (1) thereof lays down that every person providing taxable service to any person shall pay service tax at the rate specified in Section 66 in such manner and within such period as may be prescribed.  Rule 6 of the Service Tax Rules, 1994 lays down the manner of paym....

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....by Notification No. 39/2007-ST dated 12.09.2007, as follows : "Payment of service tax - (1) The service tax shall be paid to the credit of the Central Government. (i) by the 6th day of the month, if the duty is deposited electronically through internet banking; and (ii) by the 5th day of the month, in any other case immediately following the calendar month in which the payments are received, towards the value of taxable services:" 6. It may be mentioned here that the period under dispute in the present appeal is April, 2002 to September, 2005 which means that major part of the period is covered by the Rule as it stood under Notification No. 54/1998 dated 07.10.1998  (supra). As per the relevant provision, Service Tax was....

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....ce Tax is contingent upon the value of the taxable service rendered.  In other words, the payment of Service Tax does not depend upon the reimbursement of the Service Tax by service recipient to the service provider and mere realization of taxable value is enough to attract the service tax liability.  Since the appellant has already received the value of the taxable service provided, from his customers, service tax liability gets fastened on him.  8. As seen above, the liability for the major part of the disputed period from 01.04.2002 to 31.03.2005 has to be determined with reference to the rule as it stood pursuant to the amendment under Notification No. 54/1998 dated 07.10.1998 which held the field upto 31.03.2005.&nbsp....