TaxTMI 
TaxTMI 
2017 (8) TMI 834
X X X X Extracts X X X X
X X X X Extracts X X X X
....gement fees/facility agent fees to Mandatory Lead Arrangers. The department raised service tax demand of the said arrangement fees of the facility agent fees under reverse charge basis in terms of Section 66A of the Finance Act, 1994. The appellant paid the entire service tax along with interest before issuance of show cause notice and not contesting the same, hence the present appeal is only for waiver of penalty imposed under Section 76 & 78 of the Finance Act, 1994. 2. Ms. Mansi Patil Ld. Counsel appearing on behalf of the appellant submits that the issue of taxability of the services related to External Commercial Borrowings under reverse charge basis was highly debatable and contentious on which various cases were made out against v....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g Pixels Co. Vs. Commissioner of Service Tax, Ahmedabad 2014 (34) STR 286 (Tri.-Ahmd.) (ii) C.C.E. & S.T. LTU, Bangalore Vs. Adecco Flexione Workforce Solutions Ltd. 2012 (26) STR 3 (Kar.) (iii) Manipal County Vs. Commissioner of Service tax, Bangalore - 2010 (17) STR 474 (Tri.-Bang.) Upheld by Hon'ble Karnataka High Court Commissioner V. Manipal County - 2014 (36) STR J188 (Kar.) (iv) Needle Industries (I) Pvt. Ltd. Vs. Commr. Of Central Excise, Salem - 2010 (17) STR 525 (Tri.-Chennai) (v) Rochem Separation Systems (India) P. Ltd. Vs. Commr. Of S. T. Mumbai-I - 2015 (39) STR 112 (Tri.-Mumbai) (vi) Texyard International Vs. Commissioner of Central Excise, Trichy - 2015 (40) STR 322 (Tri.-Chennai) (vii) Jay Yuhshin Ltd. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... and upheld by the Hon'ble Supreme Court. In the said case, it was conclusively decided that on the reverse charge basis the service tax is payable w.e.f. 18.4.2006 when the Section 66A was enacted. Therefore there is no dispute on the fact that the issue involved in the present case is of interpretation of service tax law regarding the taxability of the service in the hands of the recipient if it is provided from outside India. In this situation, there was bona fide belief of the appellant for non-payment of service tax in time. It is also fact that the appellant paid the service tax along with interest before issuance of show cause notice and informed to the department. In these circumstances, the appellant case is squarely covered by Sec....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion and also on the amount of short payment of service tax or erroneously refunded service tax, if any, as may be determined by the [Central Excise Officer], but for this sub-section. Explanation 2. - For the removal of doubts, it is hereby declared that no penalty under any of the provisions of this Act or the rules made thereunder shall be imposed in respect of payment of service tax under this sub-section and interest thereon. From the plain reading of the above Section, it can be seen that if the appellant, on his own or on ascertaining by the department officer, paid the service tax along with interest, then no show cause notice is required to be issued to the assessee. As discussed above, we find that there is no mala fide inte....