TaxTMI 
TaxTMI 
2018 (2) TMI 832
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.... appellant and their sister Unit, namely, M/s. Chola Insurance Services Pvt. Ltd. and M/s. Cholamandalam MS Risk Services were functioning at the same premises sharing their office premises and other common services. It was further noticed that the appellant had collected the proportionate amount including service tax from their sister Unit for the common services namely, rent, man-power Recruitment agent, House-keeping, electricity, telephone etc., based on the utilization of each unit. However, it appeared that the appellant had availed full credit on the services instead of availing their portion of service tax credit. Hence, a show-cause notice, dated 20.7.2012 was issued to the appellant proposing to demand the service tax amount colle....
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....tected by the department, the same would have gone unnoticed. 3. The main contention of the appellant is that the penalty imposed under section 78 is not justified and they have also stated that no notice ought to have been issued to them as per section 73 of the Finance Act, 1994. Although, the said section 73(3) clearly states that when the tax and interest is paid in full, notice should be refrained from being issued and penalties should not be imposed, it must be noted that the section 73(4) of the Act states as follows: 73(4) Nothing contained in sub-section (3) shall apply to a case where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reason of - (a) fraud; or (b) c....