2017 (7) TMI 992

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.... service and other services used in or in relation to the manufacture of the final products. The service provided as a Commission agent would fall under the category of Business Auxiliary Service (BAS). In respect of BAS, the respondent utilized the Service Tax credit in their account. It was noticed that the respondent had not amended the registration certificate to include BAS and also did not mention the same in their ST-3 returns. However, the respondent took a separate registration on 05.09.2006 in respect of BAS. They have also deposited the Service Tax alongwith interest on 07.09.2006. A Show Cause Notice dated 21.02.2007 was issued proposing to appropriate the amount of tax alongwith interest as deposited by them and to impose penal....

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....NVAT Credit and the situation is Revenue neutral. For the proper appreciation of the case, the findings of the Commissioner (Appeals) are reproduced below:- "6 Secondly, it is the case of the appellant that they were not aware that service tax was liable to be paid in respect of services rendered to their client, M/s. Cuprum Bagrodia Ltd. Kolkata. No sooner they came to know of their liability, they paid up the tax alongwith interest. Thus from the facts that have been brought out, I find that the appellant never intended to evade service tax. In that case penalty under section 78 cannot be imposed. Further, they were not aware of their tax liability, which came to their knowledge through Department. Thus they had been under bona fide be....

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....n is reproduced below:- "2. The material on record discloses that the assessee had not disputed the leviability of service tax in respect of their activity. However, after investigation he had paid the service tax with interest as and when it became due. It is only during the course of investigation that the Officials pointed out this default of the assessee. The assessee opened his eyes and then promptly paid the service tax with interest. It is after such payment, the authorities issued the show cause notice calling upon them to show cause why penalty should not be imposed. Being not satisfied with the reasons given by him, the Assessing Authority proceeded to pass an order imposing penalty. Aggrieved by the same the revenue pref....