2025 (6) TMI 1726

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on 76 and 78, as proposed in the show cause notice, in exercise of the provisions of Section 80 of the Finance Act, 1994. 2. The brief fact of the case is that the appellants were engaged in providing Man Power Supply Service and were not paying the applicable service tax thereon. The Department felt that they were required to discharge service tax and also to take registration. Subsequent thereto, they have taken registration and also started paying service tax. However, on examination of certain records, Department felt that they have not discharged appropriate service tax on the gross amount charged from their service recipient in terms of Section 67 of the Finance Act 1994. 3. Learned Advocate submits that it is settled law, especiall....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ay service tax. As regards the disputed claim that the said amount was in the nature of reimbursable expenses, he invites attention to the impugned order, where the provisions of Section 5(2) was examined in the given factual matrix and Commissioner (Appeals) held that it was not in the nature of reimbursable expenses and therefore it cannot be excluded from the gross amount charged irrespective of whether it is reimbursable or not since they were 5. Heard both the sides and perused the records. 6. We find that in the facts of the case, it is an admitted position that they were providing taxable service. We also find that they were receiving certain amount which was paid by their service recipient under the cover of two separate invoices ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....acts and status of TKR, I am of the view that there was no intention to evade payment of service tax and that there was reasonable cause for non-payment of service tax and it is a fit case for extending the benefit under the provisions of Section 80 for waiver of penalties imposed in the impugned order under Section 77 and 78 of FA. Accordingly, I set aside the penalties imposed in the impugned order. In this regard, I place reliance on the ratio of the following decisions: " 8. Learned AR for the Department is vigorously arguing that there is no observation by the Commissioner (Appeals) that the extended period cannot be invoked even if the penalty is not imposable under Section 77 or 78. We find that while considering the grounds for ex....