2022 (12) TMI 1144

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....and 78 of Finance Act, 1994. 2. The brief facts of the case are that the appellant were registered with the Service Tax Department under various categories of taxable services. After audit of their accounts by the officers of the Department, the Revenue entertained a view that the appellant/assessee did not discharge service tax liability on commission amount paid to foreign Commission agent. The commission paid to the foreign agent is taxable and falls under the purview of "Business Auxiliary Services' as defined under Section 65(19) of the Finance Act, 1994. The definition of the person liable for paying service tax is given in Rule 2(1)(d)(iv) of the Service tax Rules 1994. as "in relation to any taxable service provided or to be prov....

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....otice, in terms of the provisions of Section 73(3) of the Act, therefore the show cause notice itself could not have been issued. 3.3 He also argued that the department has not clarified the relevant clause referred in the definition of 'Business Auxiliary Service' under which the service tax is proposed to be recovered, the show cause notice is liable to be declared as bad in law and consequently proceedings are liable to be dropped. decisions in support of above submission. (i) Balaji Enterprises - 2020-33-GSTL-97 (Tri. Del) (ii) Amrit Foods - 2005-190-ELT -433 (SC) (iii) Calibre Chemicals Pvt. Ltd. - 2021-52-GSTL-618 (Tri- Ahmedabad) (iv) LG Electronics Pvt. Ltd. - 2010-255-ELT -135(Tri. Mumbai) ....

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....f returns is the criteria for rejecting the appellant‟s plea of bona fide belief and holding against them, the plea of limitation would not be available to any assessee, inasmuch as the Service Tax liabilities would arise only in those cases where the appellants are not registered and are not filing the returns. Coming to the bona fide belief of the assessee, there are number of factors which are required to be considered. 5.2 We also find that, as no intention to contravene the provisions of Finance Act, 1994 and of the rules made thereunder can be attributed to the appellant for the reason that even if they are required to pay Service Tax on the disputed service, in question, provided by foreign agent, the entire Service Tax paid....