2017 (5) TMI 1082

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....he category of Banking and Other Financial Services. The appellant avails cenvat credit of service tax paid on input services, used by it for providing such output service. The Service Tax Commissionerate, New Delhi conducted audit of the records maintained by the appellant for the period 16.08.2001 to 31.03.2005. During the course of audit, it was observed that in lieu of financing of home appliances, the appellant also received remittances as commission from the manufacturers and dealers, in the nature of interest under the nomenclature of 'subvention income'. The service tax attributable to such service was deposited by the appellant in respect of the manufactures, other than M/s.L.G. Electronics Ltd. Further, it was also observed by the....

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....bmitted that the appellant is not contesting confirmation of the adjudged demand on merits. However, he submitted that the proceedings initiated by the Department for confirmation of the demand is barred by limitation of time inasmuch as receipt of the subvention amount during the disputed period were reflected in the periodical ST-3 returns filed by the appellant. He also submitted that based on the audit report, the Department had issued the SCN on 16.01.2008 and based on same set of facts, another SCN was issued on 23.10.2009, which is clearly barred by limitation of time, having been issued after one year from the date of knowledge. Thus, he submits that the allegation of separation of facts with intent to evade payment of service tax c....

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....is being deposited with interest @13% p.a. U/s. 73A read with Section 73B of the Finance Act, 1994. 2. On Subvention / Manufacturer Discount amounting to Rs. 3,95,85,247/-, customers have refused to pay Service Tax of Rs. 48,45,234/-. However, the same has also been paid by us (with interest, if applicable) under protest without any admission or deemed admission on our part for liability to pay service tax. We reserve our right to apply for a full refund of the aforementioned amounts. Further this payment is made without prejudice to our right to appeal against any order made by the Department in connection with the said proceedings." 7. In view of the fact that receipt of subvention/manufacturer discount in the nature of interest was ref....