TaxTMI 
TaxTMI 
2019 (1) TMI 826
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....n are on gathering intelligence that there was escapement of tax in the functioning of M/s Parker Markwel Industries, the premises were visited by the officers and after recording various statements, came to the conclusion that the assessee appellant herein has not discharged the service tax liability on the services received from abroad in respect of Management Consultancy Services and also on the job work undertaken by them in respect of their own export oriented unit in the form of collection of testing, inspection and extraction charges. To come to such a conclusion, the authorities found that there was accounting adjustment taking place between EOU and the DTA unit. On conclusion of the investigation, a show cause notice dated 04.01.20....
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.... paid by the appellant to individuals situated abroad and the tax are to be demanded from appellant under Reverse Charge Mechanism. It is his further submission that under reverse charge mechanism, the tax liability arises only from 18.04.2006 when the provisions of Section 66A were brought into the Finance Act. It is the submission that this law is settled by the judgment of Hon'ble High Court of Bombay in the case of Indian National Ship Owners Associates as reported at [2008-TIOL-633-HC-MUM-ST] and upheld by the Apex Court as reported at [2010 (17) S.T.R. J57 (SC)]. As regards the period post 18.04.2006, he would submit that in respect of Management Consultancy Services and Export Sales Commission, both services are for self consumption ....
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.... the appellant assesse herein through PLA and he cannot utilise the CENVAT Credit available with him to discharge such tax liability. He says that this has been the view of the Revenue and fortified BY adding explanation to the definition of GTA services and the output services. It is his submission that accordingly service tax paid by the appellant assessee through CENVAT Credit account is incorrect. As regards the service tax liability under reverse charge mechanism, for Management Consultancy Services and Export Sales Commission, he would submit that the appellant assessee has accepted that they have received the services and made payments to the entities situated abroad. If that be so, service tax under reverse charge mechanism applies ....
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....vice tax has to be discharged by debit in CENVAT Credit account or by cash was made by an explanation inserted on 18.04.2006. We find that Ld. Counsel for the appellant assessee was correct in stating that the issue on this point is now well settled i.e. an assessee can use the available CENVAT Credit for discharge of service tax liability on Goods Transport Agency under reverse charge mechanism upto 18.04.2006. This being the law, we find that the demands raised against the appellant on this point are unsustainable upto 18.04.2006 on merits itself. As regards the amount of tax liability post 18.04.2006, which the appellant assessee should have paid through PLA or cash, we do find that appellant has been keeping the department informed abou....
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....s raised by the appellant's Counsel and there would be no intention to evade the service tax on this post 18.04.2006. He was right in bringing to the knowledge of the Bench that this particular issue as to there cannot be any intention to evade the tax when CENVAT Credit is available, is settled by the Tribunal in the case of Jet Airways (supra) and upheld by Hon'ble Apex Court as reported herein above. Accordingly, the demand of service tax liability for the period post 18.4.2006, we hold that it is hit by limitation but at the same time we hold that the demand for service tax liability if any within the period of limitation from the date of issuance of show cause notice is liable to be discharged with interest and appellant is liable to a....