TaxTMI 
TaxTMI 
2017 (7) TMI 27
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....-evasion wing of service tax, it was observed that the assessee had made payments to M/s. Praxair, USA towards technical services received by them vide various agreements between them. On examination, it was observed that the service received fall under the category of consulting engineering services. Though they were paying service tax on this service, there was a short payment of Rs. 6,344/-. Similarly services were also received from M/s. Praxair Asia Inc., Singapore. As per Rule 2(1)(d)(iv) of the Service Tax Rules, 1994 they were liable to pay service tax of Rs. 38,28,754/- which they agreed and paid along with interest. It was also observed that they received amounts towards engineering fees, on which the service tax payable was Rs. 5....
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....tted that the impugned order is contrary to the binding judicial precedents on the same issue. He further submitted that the service tax and interest were paid by the appellant even before the issue of show-cause notice and even before being asked to pay by the Department. He also submitted that the officers of the anti-evasion wing of service tax visited the appellant premises on 16.11.2005 and verified the record and during the verification, the appellant voluntarily had shown the agreement and discussed with the anti-evasion officers that the appellant had received services from M/s. Praxair Asia International, Singapore under the category of Consulting Engineering Service in respect of the project at TISCO, Jamshedpur and the appellant ....
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.... 5. After considering the submissions of both the parties, I find that the anti-evasion wing of service tax after examining the records of the appellant discovered certain discrepancies and thereafter, immediately the appellant paid the service tax along with interest before the issue of show-cause notice. Further, I also find that discrepancy was detected from the records and the agreement produced by the appellant to the officers of the anti-evasion wing and thereafter, immediately paid the service tax along with interest. Further, I also find that the appellant on its own on reconciliation of the service tax records with the balance sheet and Profit and Loss account discovered that they have omitted to pay service tax on some services ....
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....ce, no penalty and interest can be levied payable. In the present case it is seen that even the interest which is due from the appellants has been paid. Our attention was also invited to Section 73(3) of the Finance Act and also a Board's Circular based on that. The Circular and also the Section 73(3) provides that if the assessee cleared the Service Tax due along with interest on his own and even on the insistence of the departmental authority, then no penalty proceedings can be taken against them. In other words, all the proceedings against the appellants will be deemed to have been concluded. In view of the above position, we are of the view that the impugned revisionary orders, enhancing the penalties and imposing penalties under Se....