TaxTMI 
TaxTMI 
2025 (6) TMI 1847
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....R (i) I confirm the demand of Service Tax amounting to Rs. 9,77,179/- [Service Tax - Rs.948718/-, Education Cess -Rs.18974/- and Secondary Higher Education Cess - Rs. 9487/-) and order for its recovery from the party under the provisions of Section 73(1) of the Act and also order for appropriation of Rs.3,41,499/- already deposited by them towards Service Tax liability. (ii) I also confirm the demand of Interest at the appropriate rate for the relevant period till the (iii) payment of Service Tax under the provisions of Section 75 of the Finance Act, 1994. I also impose a penalty of Rs.10,000/- upon the party under Section 77 of Chapter V of the Finance Act, 1994. (vi) I also impose penalty of Rs. 9,77,17....
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....t, 1994; (iii) Penalty should not be imposed upon them under the provisions of Section 76 of the Finance Act, 1994; (iv) Penalty should not be imposed upon them under the provisions of Section 77 of the Finance Act, 1994; (v) Penalty should not be imposed upon them under the provisions of Section-78 of the Finance Act, 1994." 2.4 This show cause notice was adjudicated by the adjudicating authority vide the order dated 29.11.2013 wherein following has been held:- "(i) Confirmed demand of Service Tax amounting to Rs.9,77,179/ [Service Tax Rs.9,48,718/, Education Cess- Rs. 18,974/- and Secondary Higher Education Cess Rs.9,487/-) and order for its recovery from the party under the provisions of Section 73(....
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....der Section 80 of the Finance Act, 1994 is on the record that the appellant had received payment to the tune of Rs.3,79,48,710/- as advances from its customers during the period 01.07.2010 to 30.06.2011 towards providing taxable Service i.e. construction of residential complex and the adjudicating authority has also admitted in its impugned order that the amount collected is gross amount. It is also observed that nothing is on the record to indicate that the appellant had received any additional amount representing Service tax from its customer. In light of the catena of judgements referred by the appellant in para 8(i), I find that the gross amount is to be treated as being inclusive of Service Tax as per Section 67 of the Finance Act, 199....
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....he appellant stated that - they have received an amount of Re 3,79,48,710/- as an advance for construction of flats from their customers from 1st July 2010 to 31st September 2011, except above no further advance in relation to the above head was received by them. they had deposited Service Tax amounting to Rs 3,41,499/ and remaining Service Tax will be deposited soon under intimation to the department he was aware that the Service Tax has to be paid after collection from the customers, but due to unknowing reasons they had not paid the same. 4.4 From the above statement it is quite evident that the appellant was fully aware of liabilities and obligations under the Finance Act, 1994. They were aware that service....