TaxTMI 
TaxTMI 
2026 (1) TMI 956
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....nt of Service Tax mentioned at (i) above demanded from them under Section 75 of the Finance Act, 1994 read with Section 142, Section 173 and Section 174 of CGST Act, 2017. (iii) I impose an equal amount of penalty equivalent to the amount of tax as confirmed under Section 73(1) of the Act as above, under Section 78 of the Finance Act 1994 read with Section 142, Section 173 and Section 174 of CGST Act, 2017 for failure to pay service tax & suppressing the facts and value of taxable service with intent to evade payment of service tax. Provided that the penalty shall be reduced to 25%., if the payment of due tax is made within 30 days of receipt of this Order. (iv) I impose penalty of Rs.10,000/-(Rupees Ten Thousand) upon them under Section 77(1)(b) of the Finance Act, 1994 read with Section 142, Section 173 and Section 174 of CGST Act, 2017 for not maintaining the proper records. (v) I impose penalty of Rs.10,000/- (Rupees Ten Thousand) upon them under Section 77(1)(c) of the Finance Act, 1994 read with Section 142, Section 173 and Section 174 of CGST Act, 2017 for not furnishing documents. (vi) I impose penalty of Rs.10,000/- (Rupees Ten Thousand)....
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...., Section 173 and Section 174 of CGST Act, 2017. (ii) The due interest on the amount of Service Tax mentioned at (1) above should not be demanded and recovered from them under Section 75 of the Finance Act, 1994 read with Section 142, Section 173 and Section 174 of CGST Act, 2017. (iii) Penalty should not be imposed upon them under Section 78 of the Finance Act 1994 read with Section 142, Section 173 and Section 174 of CGST Act, 2017 for failure to pay service tax & suppressing the facts and value of taxable service with intent to evade payment of service tax. (iv) Penalty should not be imposed upon them under Section 77(1)(b) of the Finance Act, 1994 read with Section 142, Section 173 and Section 174 of CGST Act, 2017 for not maintaining the proper records. (v) Penalty should not be imposed upon them under Section 77(1)(c) of the Finance Act, 1994 read with Section 142, Section 173 and Section 174 of CGST Act, 2017 for not furnishing documents. (vi) Penalty should not be imposed upon them under Section 77 1 (d) of the Finance Act 1994 read with Section 142, Section 173 and Section 174 of CGST Act, 2017 for not depositing the short paid ....
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....tax liability under reverse charge mechanism. Thus, in absence of any documentary evidence I find no reason to deviate from the findings of the original adjudicating authority. In view of above, I uphold the impugned order and reject the appeal filed by the appellant being devoid of merit." 4.3 Order-in-Original records as follows:- "1. From the examination of the submission made by the party during the personal hearing The party has contended that the difference is due to difference in the TDS deducted and some payment has been received in the next year. 2. Where as in support of submission the party has not submitted any documentary support as verified certificate from the service recipient, Ledger of payment, etc. 3. In absence of mandatory document for verification the submission of the party cannot be verified and thus the Service Tax is demandable over the complete differential value on which the demand has been made in the show cause notice. Thus I confirm the demand so raised in absence of the proper submission." 4.4 While recording the grounds of appeal, impugned order records as follows:- "3.1 Aggrieved with the ....
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....been determined that this amount is for providing taxable service. In absence of any investigations or determination of services provided against this amount, I am not in position to determine where this amount should be subjected to tax or not. Further, I do not find any reason to hold that extended period could have been invoked in the present case for making this demand. 4.8 From Order-in-Original and the impugned order, it is evident that for the major portion of the receipt, which is more than 96% revenue itself is of the view that these are in respect of services on which service tax was to be discharged by the service recepient under reverse charge mechanism. That being so, it became much more necessary to investigate and find out the true nature of the remaining receipts, it might be this amount also would have been the amount received for which service tax was payable under reverse charge mechanism. In any case for the purpose of levy of service tax it is not only necessary to establish the service but also the contractual/transactional relationship between the service provider and the service recipient, which is missing in the present case. 4.9 It is clearly a case ....
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....sfactory reply did the appellant decide to claim exemption. Even if one were to accept the argument that the Development Commissioner was perhaps not the most suitable repository of the answers to the queries that the appellant laboured under, it does not take away from the bona fide conduct of the appellant. It still reflects the fact that the appellant made efforts in pursuit of adherence to the law rather than its breach. 24. Further, we are not convinced with the finding of the Tribunal which placed the onus of providing evidence in support of bona fide conduct, by observing that "the appellants had not brought anything on record" to prove their claim of bona fide conduct, on the appellant. It is a cardinal postulate of law that the burden of proving any form of mala fide lies on the shoulders of the one alleging it. This Court observed in Union of India v. Ashok Kumar & Ors. - (2005) 8 SCC 760 that "it cannot be overlooked that burden of establishing mala fides is very heavy on the person who alleges it. The allegations of mala fides are often more easily made than proved, and the very seriousness of such allegations demand proof of a high order of credibility." ....