2009 (6) TMI 42

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....gned order, the Commissioner of Service Tax, Chennai has demanded an amount of Rs.1,86,23,877/- towards differential service tax due from the appellants for the period October 2005 to March 2006 and appropriated an amount of Rs.24,99,332/- paid by Sify towards the above demand. The Commissioner also demanded applicable interest for the delay in payment of differential service tax. He has also imposed penalty of Rs.2,00,00,000/- under Section 78 of the Finance Act, 1994 (the Act) on Sify for contravention of the provisions of the Act and the Rules found against them. 2. After hearing both sides on the application for waiver of predeposit of the dues for sometime we allow this application as well as the application for early hearing and tak....

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....the Commissionerate and is since registered with the Large Taxpayer Unit. The assessee raises a large number of invoices for realizing remuneration for several taxable activities, exempted activities as well as sales. A large number of transactions involve partial realizations against bills where the balance would be settled later. Realizations have to be properly tracked against each invoice and appropriate service tax paid when the amount is realized. Depending on the service tax rate applicable at the time of receipt of the amounts (the taxable value), tax rate has to be correctly applied in respect of bills raised much earlier. Service tax is also paid when advance amounts are received. The applicable rate has to be applied when the val....