2019 (1) TMI 779

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....iced that the appellant has not paid service tax on the freight charges paid to the transporters during the period from 2007-08 and onwards. Though it was mentioned that freight is being paid by their Head office at Howrah, Kolkata but they could not produce copy of centralized registration or other evidence to show that service tax on GTA pertaining to Jaipur Branch has been paid by their Head office. Hence, SCN dated 20.01.2011 was issued calling upon as to why :- (i) Service Tax amounting to Rs. 14,11,306/- (Service Tax 13,70,200/-, Ed. Cess Rs. 27,405/-, SH Edu Cess Rs. 13,701/-) not paid by them should not be recovered alongwith interest from them under proviso to Section 73(1) and 75 of the Finance Act, 1994. (ii) Penalty should....

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....ang.) is relied upon. It is further submitted that the period involved in the present SCN is from 2007-09 to 2009-10 and the SCN has been issued on 20.01.2011. Therefore, the service tax demanded for the period upto September, 2009 is time barred, illegal and untenable especially when the appellants were always under a bonafide belief that once service tax has been deposited by the head office the branch is not required to deposit service tax. Therefore, no malafides can be attributed on their part. Commissioner of Central Excise, Hyderabad Vs Chemphar Drugs and Liniments 1989 (40) ELT 276 (S.C.) is relied upon. For the same reason no question of interest on penalty arises. Sre Venkateswara Hi-Tech Machinery Vs. Commissioner of Central Exci....

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....stration being produced by the appellant. Also, the documents tendered are insufficient to prove that Kolkata office has discharged the liability of Jaipur office as has also been observed by the adjudicating authorities below. The Chartered Accountant's Certificate shows much higher an amount of freight charges for Kolkata office only then the amount shown by the appellant qua freight charge of Kolkata as well as Jaipur office. Thus, I observe no infirmity in the Order of the adjudicating authority below as far as confirmation of impugned demand is concerned. Now coming to the aspect of imposition of penalty, it is observed that from the perusal of the documents showing details of deposit of service tax and interest thereon during the p....