2021 (6) TMI 25

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....ve obtained service tax registration as contemplated under Section 69 of the Finance Act, 1994 and whether they have paid service tax at the rate specified under Section 66A of the Finance Act, 1994 and filed the prescribed return in the stipulated time period as prescribed under Section 70 of the Finance Act, 1994. For the above activities carried out they were also asked to furnish various documents. In reply to the said letter, the appellant vide letter dated 26.12.07 informed that they had raised the finance through FCCB & ECB and had discharged their service tax liability to the tune of Rs. 1,56,85,943/-(including interest of Rs. 19,34,555) on 24.11.07 for the transaction made with ICICI Bank Ltd., Bahrain. The appellant further stated that as regard the service of Lead Manager related to under writing Commission they are not liable to pay service tax as the said service was rendered prior to 16.6.05. The appellant further vide letter dated 3rd July, 2008 contended that they have paid service tax and interest of Rs. 1,56,85,943 on 24.11.07 on the payment made towards front end fees and processing fees except the same were payable by them and it pertain to foreign currency made....

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....305, under Section 78 of Finance Act, 1994. However, as provided in proviso to section 78 ibid, if the noticee pays the amount of service tax confirmed along with interest thereon, within 30 days from the communication of this order, the amount of penalty shall be 25% of the penalty imposed above. The benefit of reduced penalty shall be available only if the amount of penalty so determined has also been paid within 30 days from the receipt of this order. V. I impose penalty on the noticee M/s. ESSAR OIL LTD., post box No:24, Head P.O. Khambhalia, Dist:Jamnagar 361 305, under Section 76 of the Finance Act, 1994 and accordingly order that the noticee shall pay in addition to service tax and interest on that tax amount in accordance with the provision of Section 75 ibid, as ordered at SL.No.(II) and (III) above, penalty at the rate of Rs. 200 or at the rate of 2%, of such tax, per month, whichever is higher, starting with the first day after the due date till the date of actual payment of outstanding amount of service tax. However, the total amount of penalty under this Section shall not exceed the service tax due and confirmed. VI. I impose penalty of Rs. 1000 (Rs. ....

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....t, 1994. In such case no show cause notice was required to be issued. In support of his submission he placed reliance on the following judgments:- • JAI RESEARCH FOUNDATION v/S. CCE, 2019 (25) GSTL 473 (T); • CST v/S. RELIANCE COMMUNICATION LTD.;2019 (22) GSTL 203 (T); • EMI TRANSMISSION LTD. v/S. CCE, 2019 (20) GSTL 259; • RELIANCE SECURITIES LTD. v/S. CST, 2019 920) GSTL 265 (T); • ESSAR STEEL LTD. v/S. CCE, 2008-TIOL-2048-CESTAT-AHM. • CCE v/S. JSW STEELS LTD. 2017 (6) GSTL 397 (MAD.), • PUSHPAM PHARMACEUTICALS COMPANY v/S. CCE, 1995 (78) ELT 401 (SC) • ITW SIGNODE INDIA LTD. v/S. CCE, 2003 (158) ELT 403 (SC) • CCE v/S. TEJAS AGENCY, 2014 (34) ELT 803 (GUJ.) 2.2 On query of the bench that whether the appellant is contesting the taxability of the service, he answered in affirmative. In this regard he submits that the service was provided by the ICICI Bank-Bahrain branch, however, they have their head office in India. Only in that case where the service provider from overseas does not have office in India, the service recipient is required to pay service tax on r....

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....id then there is a liability to pay interest which the noticee has paid. Therefore, it cannot be said that situation is revenue neutral. The issue eligibility of cenvat credit is not before me for adjudication in this case. Therefore, I am not deliberating upon that. However, even if, for the sake of argument it is assumed that the cenvat credit is available as input services then also it cannot be said that no service tax is payable on the services received by the noticee under section 66A of the Finance Act, 1994. I find that noticee has placed reliance on the judgment of the apex court in the case of Commissioner of Central Excise, pune Vs. Coca- Cola India Private Limited reported at 2007 (213) ELT 490 (SC). Upon perusal of the said judgment I find that in backdrop of the fact regarding dispute of classification of goods it has been held that classification of non-alcoholic beverages bases/concentrates manufactured which are supplied to bottlers, who in turn use the same as raw material in manufacture of beverages on which Central Excise duty is paid. Therefore, it has been held that situation is revenue neutral. I find that said case is not applicable in the present c....