2017 (9) TMI 93

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....ices namely Consulting Engineer Services, Installation and Commissioning Services, Business Support Services and information Technology Service. They are engaged in export of the services in terms of export of Service Rules, 2004. They availed facility of Cenvat Credit of the input services etc. The respondent was also receiving taxable services like, Information and Technology Services, Business Support Services, Consulting Engineer Services from various service providers located in foreign countries i.e. outside India and accordingly was liable to pay service tax under Reverse Charge Basis. For the period October, 2008 to March, 2009 the respondent filed the services return declaring that the admissible taxes have been paid being Rs. 26,2....

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....and accordingly, it appeared that the respondent have contravened the provisions of the Act and the Rules inasmuch as they failed to assess and pay Service Tax liability for services received from outside India on Reverse Charge Basis, as applicable under Section 66A of the Finance Act. It further appeared that during the period October, 2008 to July, 2009, the respondent paid an amount of Rs. 5,53,19,337/- against receipt of taxable services. However, respondent failed to pay Service Tax of Rs. 37,33,485/-. Accordingly, the respondent was directed to show cause as to why an amount of Rs. 37,33,485/- be not demanded on account of non-payment of Service Tax and from the amount already deposited and/or adjusted the matching amount be not adju....

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....redit of the Service Tax paid/payable on Reverse Charge Basis, the situation is wholly Revenue neutral and there is no loss of Revenue. It was also urged that due to the nature of business of the appellant being mainly export of service, the respondent is entitled to refund of Cenvat Credit taken and in this view of the matter, there is no ingredient of any misgiving on the part of the respondent-assessee to evade payment of service tax. 4. The learned Commissioner (Appeals) was pleased to accept the contentions of the respondent-assessee and allowed the appeal setting aside the penalty imposed under Section 78 of the Act. The learned Commissioner (Appeals) have observed that the assessee have not disputed the Service Tax liability and t....

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....anding Service Tax as paid in the original return for the period October 2008 to March, 2009. 7. The learned counsel for the respondent-assessee opposing the appeal relies on the findings of the learned Commissioner (Appeals) and stated that there is no merit in the appeal of the Revenue. The learned counsel relied on the grounds taken before the learned Commissioner (Appeals). Under the facts and circumstances, as is evident on the face of the show cause notice that during the period under dispute, the appellant had paid Service Tax of Rs. 5.53 crores approximately. There is no case of deliberate attempt not to pay service tax of a small sum of Rs. 26 lakhs or 27 lakhs. Further, the fact that the default in depositing the tax in time oc....