AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 1469
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....the Order in Original No.71/2011 dated 04-08-2011 of the adjudicating authority. 2. Brief facts are that the Directorate General of Central Exercise Intelligence (DGCEI) commenced an investigation based on intelligence that the appellant had paid certain service charges like agreement fees and agency fees to the Singapore branch of ICICI bank for the services provided by them in relation to arrangement of External Commercial Borrowings (ECB) that the appellant had obtained. The Department was of the view that the services provided in relation to securing the ECB are in the nature of lending services falling under the service category of "Banking and Other Financial Services" (BOFS) and are liable to service tax since the service provider....
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....itation since there is no evidence of an act of wilful suppression or fraud or any other ingredient mentioned in the section that was done by the appellant, stated in the SCN. Ld. Counsel contended that the department was aware of the facts as an audit was conducted in 2008 it was further contended that when tax itself was paid by the appellant on 6-10-2009, 12-10-2009 and 23-10-2009 before the issue of SCN and a small amount of Rs.24,995/- was paid on 22-11-2010 along with interest of Rs.10,79,691/-, it is evident that the appellant had discharged the entire amount of service tax even before the issuance of SCN and the minor amount that has arisen upon issuance of SCN has also been paid issue demur to secure peace. It was submitted that th....
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....te Authority in the impugned order in appeal. 6. Heard both sides. Perused the appeal records as well as the relied upon citations submitted. 7. The short issue that arises for determination is whether in the facts and circumstances of this case, the appellant could have been visited with the penalties imposed. 8. We find that the appellant had substantially paid the service tax before the issuance of the show cause notice. It would be of profit to refer to the provisions of Section 73 pertaining to the relevant period, which is as given below: "SECTION 73. Recovery of service tax not levied or paid or short-levied or short-paid or erroneously refunded. - (1) Where any service tax has not been levied or paid or ha....
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....made, may pay the amount of such service tax, chargeable or erroneously refunded, on the basis of his own ascertainment thereof, or on the basis of tax ascertained by a Central Excise Officer before service of notice on him under sub-section (1) in respect of such service tax, and inform the Central Excise Officer of such payment in writing, who, on receipt of such information shall not serve any notice under sub-section (1) in respect of the amount so paid : Provided that the Central Excise Officer may determine the amount of short-payment of service tax or erroneously refunded service tax, if any, which in his opinion has not been paid by such person and, then, the Central Excise Officer shall proceed to recover such amount in th....
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....gned OIO. It is also seen that after the said payment in October 2009, the SCN was issued only on 24-09-2010 and acknowledges the aforesaid payments made in 24-09-2010. However, there is no evidence that the Central Excise Officer has communicated any shortfall in payment of tax to the Assessee. 10. We note that the entire payment of tax due from the Appellant has been computed on the basis of the records maintained by them. It is also a relevant consideration that the appellant has paid a substantial part of the tax before the issuance of the Show Cause Notice. The balance tax along with interest also stood paid soon thereafter. It is also pertinent that the statement recorded from the personnel of the Appellant is also exculpatory. The....