TaxTMI 
TaxTMI 
2019 (1) TMI 68
X X X X Extracts X X X X
X X X X Extracts X X X X
....provider for rendering 'Courier Agency Service' classifiable under Section 65(105)(f) read with Section 65B(44) of the Finance Act, 1994. Consequent to the audit conducted on the records of the appellant by the officers of the Service Tax Audit Commissionerate during the month of June 2015 for the period April 2010 to March 2015 and on verification of the records the Department found that the appellants are liable to pay the following Service Tax: (i) Service Tax for the period from April 2014 to March 2015 - Rs. 22,47,125/-. (ii) Service Tax under partial reverse charge on Manpower/Security Supply Service received covering the period from April 2013 to March 2015 - Rs. 51,170/-. (iii) Excess availment of CENVAT credit on input invoices ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er (A) confirmed the imposition of penalty of Rs. 22,47,125/- under Section 78 of the Finance Act which is under challenge in the present appeal. 3. Heard both sides and perused the records of the case. 4. The learned counsel for the appellants submitted that the impugned order is not sustainable in law as the same has been passed without properly appreciating the facts and the law. He further submitted that the appellant has not disputed their liability to Service Tax of Rs. 22,47,125/- and as soon as non-payment was pointed out, an amount of Rs. 10,63,875/- payable for the period April 2014 to September 2014 was paid and ST-3 Return for the said period was filed on 13.07.2015. He further submitted that the issuance of SCN as far as Serv....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2,47,125/- and had paid the entire Service Tax with interest and therefore the imposition of penalty under Section 78 is not legal and proper. He also submitted that as per amended Section 78, it is provided in the proviso that in respect of cases where details relating to such transactions are recorded in the specified records for the period beginning with 8th April, 2011 up to the date on which Finance Bill, 2015 receives the assent of the President (both days inclusive), the penalty shall be 50% of the Service Tax so determined. He also produced the copies of order passed by the Commissioner of Central Tax on record wherein penalty imposable under Section 78 of the Act has been restricted to 50% of the Service Tax for the period till Mar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....E Chennai, 2006 (1) STR 289 (Tri. Chennai). (viii) Final Order No. 22185/2017 in the Case of Malayalam Telenet Pvt. Ltd. Vs. CCE, Cochin. (ix) Final Order No. 22285/2017 in the case of Polyworld Vs. CCE, Calicut. 6. After considering the submissions of both the parties and perusal of the material on record, I find that the appellants have collected the Service Tax and not paid the same to the Government treasury and also filed late Return for the impugned period. Further, I find that when the audit was conducted and the Audit Party found that the appellants are liable to pay Service Tax, the appellant conceded his liability and paid a part of the amount and thereafter filed the Return on 13.07.2015. I also find that subsequently befor....