2018 (8) TMI 328

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....tral Excise department. They are also registered under service tax under the categories of 'transport of goods by road, legal services, rent a cab service, business auxiliary services and consultancy services'. During the course of audit it was found that appellants have not paid service tax in respect of the following services: (a) Legal services received from advocates, (b) Rent a cab services received, (c) Business auxiliary services received to whom commission was paid in foreign currency and (d) Consultancy services received from overseas and paid in foreign currency. 3. It was found that the appellant was liable to pay service tax under reverse charge mechanism in respect of the aforesaid service....

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....sion or misrepresentation of facts as they have filed their ST3 returns timely and the short payment of service tax was only on an account of inadvertent mistake on their part. 6. The impugned Order-in-Appeal and the Order-in-Original have proceeded on presumption that they had suppressed the fact of non payment of service tax with a mala fide intention. Since the tax is payable under reverse charge mechanism for the services received, the entire amount would be available to them as CENVAT credit and hence, the entire exercise is revenue neutral. Therefore there cannot be allegation of an intention to evade service tax in this case. 7. The appellant prayed that the impugned Order-in-Appeal may be set aside and the penalty imposed on t....

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....has erred in relying on Sec.73(4A) and in upholding the Order-in- Original. He also asserted that since the entire exercise is revenue neutral, there cannot be any penalty in the particular case. He relied on the following case laws: (a) Jain Irrigation Systems Vs CCE, Nasik [2015 (40) STR 752 (Tri- Mum)] (b) CCE, Chennai Vs Tenneco RC India Pvt Ltd [2015 (323) ELT 299 (Mad.)] (c) Gujarat Borosel Ltd Vs CCE, Surat [2014 (36) STR 808] (d) British Airways Vs CCE, Delhi [2014 (36) STR 598 (Tri-Del)] 9. The Learned Departmental Representative on the other hand asserted that although the information was recorded in their other accounts, they have not disclosed the fact of receiving the services or paying th....