2017 (12) TMI 1030

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....activities of providing consulting engineers services, erection, commissioning and installation services, management maintenance or repair services, BAS, IPR, BSS, ITSS and transportation of goods by road. They are registered as service tax assessee with LTU and avail CENVAT credit of the service tax paid on various services and capital goods under the provisions of CENVAT Credit Rules, 2004. 2.1 The appellant discharges service tax liability under the reverse charge mechanism on the payments made towards the receipt of technical know-how services from the service providers located abroad, under the category of intellectual property right services (IPR). During the course of audit for the period Jan 2009 to Dec 2011, it was noticed that ....

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.... the appellant have submitted that they had paid the R&D Cess before payment of consideration and the order has extended the benefit of exemption. Therefore, interest and penalty will not survive as there is no suppression of facts on the part of the appellant. But the Learned Commissioner (A) have rejected their appeal and upheld the order-in-original. Hence, the present appeal. 4. Heard both the parties and perused the records. 5. The Learned Counsel for the appellant submitted that the impugned order demanding the interest and imposing the penalty by invoking the extended period of limitation is not sustainable in law. She further submitted that the appellants have already discharged the interest for delayed payment of R&D Cess. Ho....

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.... of facts, penalty under section 78 cannot be imposed. For this submission she relied upon the following decisions: • CCE Vs. Jamshedpur Beverages - 2007 (214) ELD 321 (SC); • Texyard International Vs. CCE - 2015 (40) STR 322 (Tri.-Chennai). 6. On the other hand, the Learned AR for the Revenue reiterated the findings of the impugned order. 7. After considering the submissions of both the parties and perusal of material on record and various judgments relied upon by the appellant, I find that the service tax has been paid on R&D Cess but there was a delay in the payment of the same. But the appellant's stand is that they have paid the interest which is disputed by the Revenue. As far as the penalty under secti....