TaxTMI 
TaxTMI 
2022 (9) TMI 903
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....lea that the Cenvat credit was wrongly taken on account of clerical mistakes. ii) Whether the CESTAT was right in holding that there is no suppression of facts in the instant case and they are eligible for benefit of Section 73(3) of the Finance Act, 1994 as they had paid Service Tax with interest before the issue of Show Cause Notice. iii) Whether the CESTAT was right in setting aside the Order-in-Original and allowing Respondent appeal." 2. Brief facts of the case are, respondent-assessee is registered under the Service tax. During the course of audit for the period October 2004 to 2009, it was observed that assessee was availing the benefit of Notification No.1/2006 dated 01.03.2006 in respect of Convention Centre Se....
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....2009 was found in contravention of Rule 6(3) of CENVAT Rules. On being pointed out assessee paid service tax of Rs.85,85,898/- with interest of Rs.33,57,964/-. 5. It was also observed during the audit that assessee had not paid service tax on rent received between April 2009 and March 2010. On being pointed out, assessee paid the said tax liability of Rs.43,260/- with interest of Rs.3,006/-. 6. Similarly, in respect of Service Tax payable under Banking and Financial Services, assessee was required to pay a sum of Rs.23,002/- and an interest of Rs.4,577/-. The assessee paid the said tax and the interest. 7. Thus, assessee paid service tax on various services pointed out by the Revenue with interest and requested that no show cause n....
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.... Vs. Commissioner of Central Excise, Mangaluru (2012) 281 ELT 168 (Kar) and Union Of India Vs. Rajasthan Spinning and Weaving Mills (2009)238 ELT 3 (SC). 12. We have carefully considered rival contentions and perused the records. 13. Undisputed facts of the case are, short payments of service tax were found during the audit. Once the same was brought to the notice of the assessee, the assessee has promptly paid the taxes with interest there on without any demur and requested that no show cause notice be issued. The Revenue issued a show cause notice and adjudicated the matter and passed the Order-in-original. In addition to confirming the demands, the adjudicating authority also imposed penalty equivalent to the amount of service tax.....
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....ent that the preventive party had visited assessee's Factory premises. On scrutiny of internal records, it took a view that there was short payment of duty on sales made from assessee's depot. Assessee was collecting handling and forwarding charges at the rate of Rs.6/- per bag/carton, up to October 1996 and thereafter, at Rs.8/-. Assessee, during the material time had collected Rs.7,46,219/- as handling and forwarding charges on the sales from the Mill. The assessee had paid duty only on the difference between the amount collected and the actual expenditure. In the same way, a sum of Rs.5,59,603/- was left out while computing the levy of excise duty which worked out to Rs.1,09,682/-. In the same manner, there was short payment of d....
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....with intent to evade payment of duty. 19. Thus the sine qua non to impose penalty under Section 11AC of Central Excise Act is, commission of fraud, collusion or any willful mis-statement or suppression of facts, or contravention of any of the provisions of the Act. 20. Under Section 78(1) of Finance Act 1994, penalty may be imposed if the service tax is not paid due to any reason of fraud or collusion or wilful mis-statement or suppression of facts or contravention of any of the provisions of the Act and the Rules made thereunder with the intent to evade payment of service tax. 21. Therefore, the question that falls for consideration is, whether payment of service tax, which was not made by the assessee falls within the conditions ....