2016 (11) TMI 585

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the repair work of moulds supplied by the their sister concern and returned the repaired moulds to their client. The show cause notice was issued alleging that the repairing of mould is a service activity under Management, Maintenance and Repair Services therefore the demand of service tax and imposition of penalty was proposed. In the adjudication, the adjudicating authority has confirmed the demand of service tax, demanded interest under Section 75 and imposed penalty under Section 78 equal to 50% of the Service tax amount in terms of subsection (1) of Section 73(3). Being aggrieved by the Order-in-Original, appellant filed appeal before the Commissioner(Appeals) which came to be rejected therefore the appellant is before me. 3. Shri. Sh....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....om service tax vide notification No. 8/2005-ST there is no malafide on the part of the appellant accordingly penalty is also not imposable invoking Section 80 of the Finance Act. He placed reliance on the following judgments: (a) Bajaj Travels Ltd Vs. Commissioner of Service Tax [2012(25) STR 417(Del.)] upheld by Hon'ble Apex Court[2015(37)S.T.R. J29(S.C.)] (b) Veriton Software Solution Pvt Ltd. Vs. C.C.E. Cus, S.T. Mysore[2015(39) S.T.R. 845(Tri. Bang.)] (c) Ram Singh Kanda & Sons Vs. Commissioner of C. Ex. Ludhiana[2015(38) S.T.R. 1047(Tri. -Del)] 3. Shri. S.R. Nair, Ld. Examiner(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He further submits that the demand pertains to the period January to ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lief of the appellant for nonpayment of service tax is established. It is also observed that the appellant have issued the invoices on their client in respect of service of repair provided by them and they have declared the transaction in their books of accounts. With this fact coupled with bonafide belief as discussed above the appellant has been able to show reasonable cause for nonpayment of service tax on due date. Therefore they are entitle for the waiver of penalty imposed under Section 78 by invoking Section 80. I further observed that even though the appellant was prima facie entitled for the exemption notification No. 8/2005- ST but they have not contested and paid the service tax alongwith interest and intimated to the department ....