2020 (7) TMI 638

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.... Tax, Kolkata vide adjudication order dated 03.11.2011 which has been further upheld by the Ld. Commissioner (Appeals), Kolkata, vide Order-in-Appeal dated 19.07.2016, against which the assessee is in appeal before us. 2. Briefly stated the facts of the case are that the appellant is engaged in the manufacture and export of jute products outside India. For the purpose of obtaining export orders, the appellant is incurring commission amount for payment to the selling agents located outside India which is liable to service tax under the category of Business Auxiliary Services. Enquiry was initiated by the Department with regard to non-payment of service tax under reverse charge mechanism on commission amount paid by the appellant to the serv....

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.... service tax amount was available as input service credit and / or refund since the same has been used in procuring of the export orders and that the goods have been exported outside India. He pleaded that since service tax stood deposited well before the issue of SCN, penalty be waived considering the applicability of principle of revenue neutrality in the absence of wilful suppression or fraud. He further submitted that it is a settled legal position that when tax remains unpaid, the same cannot be attributed merely on account of fraud or suppression with intent to evade payment of service tax. He relied on the decision of the Hon'ble Andhra Pradesh High Court in the case of CCE Visakhapatnam vs. Tirupathi Fuels Pvt Ltd 2017 (7) GSTL 142 ....