2023 (3) TMI 236

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....d that the appellants were availing the services of foreign agents for procurement of orders. The appellant paid commission to the foreign agents in foreign currency for such services. It appeared that the above said services provided by the foreign agents would fall under the category of Business Auxiliary Services (BAS in short) and the commission paid by the appellant to their foreign agents is taxable under Reverse Charge Mechanism (RCM in short) with effect from 09.07.2004. In terms of rule 2(1)(d)(iv) of the Service Tax Rules, 1994 (STR,1994), the appellant was liable to pay service tax on the commission paid to foreign agents. The appellant neither registered themselves under BAS nor paid service tax on the commission paid to foreign....

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....is submitted that in paragraph-10, the Commissioner has observed that there was no suppression of facts and that appellant had not paid the service tax on a bonafide belief that such commission paid to the foreign agents is not subject to levy of service tax. However, the demand for the period after 18.04.2006 has been confirmed which is contrary to the discussions and findings made in paragraph-10 & 11. He prayed that the appeal may be allowed. 3. Learned AR Ms. K. Komathi supported the findings in the impugned order. On merits, the learned AR submitted that in the case of Olam Enterprises India Private Limited Vs. Commissioner reported in 2019 (27) GSTL J35 (S.C), and in the case of Commissioner Vs. Premier Tobacco Packers Pvt. Ltd. re....

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....essee started paying service tax on regular basis from April, 2007 onwards after being pointed out by the SIR section of the department and they also paid the service tax of Rs. 4,51,930/- pertaining to the period 18.04.2006 to 31.07.2007 long with interest o Rs. 82,281/- within three months of issue of notice. The ignorance of law is established from the fact that the assessee while paying the service tax for the above period did not distinguish the services which were received prior to 18.04.2006 and hence paid the above amount, which included an amount of Rs.91,198/- which is not legally payable. In view of the above facts of the case, the allegation of suppression of facts with an intention to evade payment of service tax is not justifi....