2018 (5) TMI 484

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....ufacture of motor vehicles and paying Central Excise duty as applicable; they are registered with Service Tax authorities for providing and receiving services for which they are discharging Service Tax as service provider as well as under reverse charge mechanism. During the course of departmental audit, it was observed that they had issued two debit notes to their supplier for recovery of royalty from the Oil Companies and recovered the same and booked the same under the head "other income". Appellant agreed to the audit query and paid the Service Tax liability alongwith interest on 27.10.2015, but did not agree for payment of penalty. Accordingly, a show-cause notice was issued, which on adjudication, wherein the adjudicating authority co....

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....been confirmed under the provisions of Section 73 by invoking extended period, the judgment of Hon'ble High Court of Madras in the case of Dhandayuthapani Canteen - 2015 (39) STR 386 (Mad.) , Jindal Vijaynagar Steel Ltd. 2017 (346) ELT 378 (Kar) and IWI Crogenic Vaporization System (I) Pvt. Ltd. - 2017 (47) STR 209 - (Guj) indicate that Service Tax liability even though paid before issuance of show-cause notice, they should be penalized under Section 78 of the Finance Act, 1994. 6. On careful consideration of the submissions made by the both sides, I find that the issue is regarding imposition of penalty under section 78 of the Finance Act, 1994. It is undisputed that the appellant had discharged Service Tax liability on the amount recei....