2016 (11) TMI 1353

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....and  Shri R K Mishra,  ARs for the Respondent ORDER The challenge in the present appeal is to penalties imposed under section 76 and 77 of the Finance Act, 1994. As per facts on record, the appellant availed the services of foreign commission agent for procuring their orders from various  Customers. With the insertion  of section 66A in the Finance Act effective from 18.4.200....

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....te appearing for the appellant   and Shri H C Saini, and Shri R K Mishra, learned DR appearing for the Revenue,  I find that the challenge in both the appeals is to imposition of penalties. It  stands contested by the appellant that inasmuch as they were not providing any service from India but were only receiving such services from outside, they were under  a bonafide bel....

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....by both the sides, I find that penalty stand imposed upon lower authorities by observing that since the appellant was under a legal obligation to discharge service tax liability, the penalty has to be imposed. The appellant is not contesting his legal obligation to pay the service tax and  infact has paid the same. The only plea is that on account of confusion in the field as also circular re....

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....of CCE, Guntur vs. Narasaraopet Municipality [2015 (39) STR 800 (AP)] has upheld the Tribunal's order vide which penalties were set aside by invoking the provisions of section 80.   In the present case, I find that whatever Service tax was required to be paid by the appellant, was available to them as cenvat credit. As such, the entire situation is revenue neutral, in which case, no malafide....