TaxTMI 
TaxTMI 
2018 (7) TMI 435
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.... the case in brief are that the appellants are engaged in the manufacture of Hydraulic Cylinders and are registered with Central Excise. They are also registered with the Department under service tax provisions for payment of service tax under the categories of GTA Service, Manpower Recruitment, Rent-a-Cab etc. During the period 2013-2014, 2014-2015 and 2015-2016, the appellant had short paid the service tax on the services mentioned above, and it was detected by the Department during the course of Audit on scrutiny of their records. The appellant paid the service tax along with applicable interest as pointed out by the audit even before show cause notice was issued. A show cause notice was issued to the assessee demanding the service tax s....
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....failed to declare the true value of the taxable services in their ST-3 returns and thereby suppressed the facts from the Department. He therefore held that the proviso to Section 73 (1) is invokable. He further held that penalty under Section 78 is imposable as the short payment was a result of "suppression of facts by the appellant". 5. Learned Representative of the appellant submits that the difference occurred due to an error in their calculation and there was no intention to evade payment of service tax. As soon as the audit had pointed out the mistake, they had paid the differential service tax along with interest immediately even before the show cause notice was issued to them. He asserted that the service tax is evaded without any m....
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....g whether or not penalty should be imposed. He also relied on the order of the CESTAT, Chennai in the case of Cholamandalam MS General Insurance Company Limited decided by Final Order No. 42719/2017 by CESTAT-Chennai, and it was held as follows: When the value of services is reflected in the statutory returns on the lower side but subsequently stand detected by the Revenue on the higher side, the same leads to inevitable conclusion that such a lower value was being reflected in the statutory records/returns with a malafide intention to evade payment of service tax. If that be so, the benefit of section 80 as contended by the appellants, cannot be extended to them. The provisions of section 73 also makes it clear that in case of suppressio....