TaxTMI 
TaxTMI 
2022 (2) TMI 666
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....ions of Section 73 (1) of the Finance Act, 1994. ii. I also order payment/ recovery of interest at appropriate rate under Section 75 of the Finance Act, 1994 on the service tax demanded at (i) above, from the due date of payment till the date of actual payment. iii. I impose penalty of Rs. 1,27,27,2094- (Rs. One Crore, Twenty Seven Lakhs, Twenty Seven Thousand, Two Hundred and Nine only) under Section 76 of the said Act, on the assessed for non-payment of service tax, The amount of penalty shall however be reduced to 25% of the service tax determined, if the service tax and interest determined is paid along with the reduced penalty within 30 days from the date of receipt of this order in lens of proviso to Section 76 of the Finance Act, 1994; and iv. I also impose a penalty of Rs. 5,000/- or Rs. 200 for every day during which such failure continues, whichever is higher, starting with the first day after the due date, till the date of actual compliance under Section 77 of the Finance Act, 1994. II Show Cause Notice bearing F. No: ST/DN-V/Gr. IV/TGL/109/2011/4501 dated 17.04.2012.: i. I....
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.... was additional income shown in those account, under the bead of operating income', which had not been declared in the ST-3 returns. 2.3 Since the said branch office was registered at Chennai two SCNs with SCN No. 118/2010 dated 07/04/2010 amounting to Rs. 2,44,32,896/- for 2006-07 to 2008-09 (upto Jan,) and SCN No. 209/2010 dated 16/04/2010 amounting to Rs. 23,64,547/- for Feb, 2009 to Sep, 2009 were issued by the Commissioner, Service Tex; Chennai. Subsequently appellant has opted for centralized registration at Mumbai, with effect from October 2009. Therefore subsequent show cause notice bearing F. No. ST/DN-V/GRIV/LG/71/2011 dated 20/04/2011 amounting to Rs. 14,03,81,110/- for October, 2009 to September, 2010 and F. No. ST/DN-V/GRIV/TLG/109/2011 dated 17/04/2012 amounting to Rs. 13,35,73,905/- for October, 2010 to September, 2011 was issued by the Commissioner, Service Tax- II, Mumbai. 2.4 These show cause notice were adjudicated as per the impugned order referred in para 1, supra. 2.5 Aggrieved appellants have filed this appeal. 2.6 Revenue has filed cross objections to the appeal. 3.1 We have ....
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....ng services relating to handling of import/ export cargo and were paying service tax under category of Business Auxiliary Service, Business Support Service, Cargo Handling Service and Transport of Goods by Road Service. They received cargo, issued House Bill of Lading. While billing charges to the customers, they were showing the amounts towards freight apart from various other charges being recovered by them. On freight recovered they were not paying any service tax. On scrutiny of the records of appellant it was observed that the net operating income as per their financial records did not tally with the value of taxable service on which the applicant had paid service tax. No suitable explanation came forth neither appellants provided the revenue the nature of transactions which resulted in this difference between the financial records and ST-3 return. Revenue was of the view that appellant should have paid service tax on the entire receipts as seen in the financial statement of the applicant. 4.3 In the impugned order, Commissioner has in para 13 and 17 recorded as follows: "13. The assessee is....
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....of the Memorandum and Article of Association dated 07-14-2005 of the Assessee's company, it appears that they are engaged in providing certain services such as Shipping Agents, Clearing Agents, Ship Owners, Ship Brokers, Freight Forwarders, Consolidators, Freight Contractor, IATA agents, Non vessel Owning Common Carriers, Logistic Service providers, Multi Modal Transport operators, General Sales Agents, Passenger Sales Agents or Cargo Sales Agents, Carrier by land, Air and water transport haulage Merchants Stevedores, Salvers. All of these services appear to be taxable services being covered under Section 65 of the Finance Act, 1994. Accordingly, the amount of income difference observed between the gross receipts declared in the ST 3 returns and the gross income reflected in the balance sheet is to be treated as income earned on account of providing taxable services only and service tax classifiable under Business Auxiliary Services. In the instant case, non-cooperation of the Assessee and DOD-production of the relevant records called for during the process of enquiry appears to have led t....
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....rved that - '9 ..... Service Tax was introduced in India vide the Finance Act, 1994. It is legislated by the Parliament under the residuary entry, i.e. Entry 97 of List I of the Seventh Schedule of the Constitution of India. It is an indirect tax and is to be paid on all the services notified by the Union Government for the said purpose. The said tax is on the service and not the service provider.' and, though in the context of dispute relating to 'mandap keeper', the judgment is particularly relevant here as it goes on to observe after drawing attention to Section 68 and Section 65 of Finance Act, 1994 that. 12. A conjoint reading of the above provisions of the law goes to show that the services provided to a client, ... ... , falls under the category of taxable service' 9. The description of the taxable service in Section 65(105) of Finance Act, 1994 as well as the definition, if any, of the terms therein are the primary determinant for taxation of any service. From the observation of the Hon'ble High Court of Gujarat supra, it is clear that the provision of service is manifest by the existen....