2019 (6) TMI 564

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....peal, lies in a narrow compass, the appeal is taken up for hearing with the consent of ld.D.R. for the Revenue. 2. The facts of the case in brief are that the appellants are engaged in the manufacture of machinery and machinery parts classifiable under Chapters 73 & 84 of the Central Excise Tariff Act, 1985. They are also engaged in providing taxable services under the category of "Consulting Engineers, Business Auxiliary Service, Rapair & Maintenance Service" etc. The appellants have entered into separate agreements with three non-resident manufacturers of machineries i.e. (i) M/s DBT Mineral Processing GmbH (DBTMP), Germany, (ii) ALLMINERALS Aufbereitungstechnik GmbH & Co. K.G (ALLMINERAL, Germany), Germany & (iii) ALL MINERALS L.L.C. (....

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..... Since the appellant had already paid an amount of Rs. 10,23,313/-, the entire amount was appropriated towards confirmed demand and penalty payable. The appellants have also paid Rs. 1,22,310/-, which has been appropriated towards interest and penalty. On appeal before the lower appellate authority, the ld.Commissioner (Appeals) rejected the appeal. Hence, the present appeal before the Tribunal. 4. Heard the ld.D.R. for the Revenue and perused the appeal records. 5. It is mentioned by the appellant in their grounds of appeal that non-resident parties are manufacturers and are not professionally qualified engineers/engineering firm and therefore, services received from them cannot be brought under the ambit of the Act. It is their submi....

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....of the Finance Act, 1994. The amount of interest so payable is to be appropriated from the amount already deposited towards payment of interest by the notice. The amount of Rs. 5,478/- (Rs. 1,22,310/- (-) Rs. 1,16,832/-) lying after appropriation of interest is also appropriated towards penalty payable. 3 I impose penalty of Rs. 100/- per day from due date due to late payment under Section 76 of the Finance Act, 1994 in view of the discussions above. 4. I also impose a penalty of Rs. 8,52,761/- equal to the service tax amount demanded as mandatory penalty under Section 78 of the Finance Act, 1994, which shall stand reduced to Rs. 2,13,760/- (25% of Rs. 8,52,761/-) if they choose to pay the amount within 30 (thirty) days of communicati....