TaxTMI 
TaxTMI 
2026 (4) TMI 865
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....penalties under section 78 & 77 have also been imposed. 2. The issue, in brief, is that the appellants are manufacturer of Biodiesel and Refined Glycerine and were having an agreement with AE Biofuels Inc., a company situated outside India to take expertise of senior technical personnel for commissioning of Glycerine Refining plant located at Kakinada, East Godavari Dist., Andhra Pradesh. The appellants used to reimburse the salary and travelling expenses incurred on deputation by of such experts AE Biofuels Inc., on cost to cost basis and the same facts were also disclosed in their audited financial statement for the year ended 2008-09. The department, based on audit, felt that the appellant has not paid service tax on import of under '....
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....le. He has taken us through the history of this demand where he has explained to the Excise authority, who has conducted the audit in September, 2009, about their having reimbursed certain expenses incurred on deputation of experts by AE Biofuels Inc., on cost to cost basis. The audit alleged that the appellant had not paid service tax on import of ECIS and subsequently, they furnished certain details to the department but the department raised certain objection. After further correspondence including submission of various records, ledger extracts, copy of agreement, etc., they finally informed the department that they have paid applicable service tax as well as interest thereon vide GAR-7 Challan No.30015 dt.10.05.2012 and also requested t....
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....ng it. The word 'evade' in the context means defeating the provision of law of paying duty. It is made more stringent by use of the word `intent'. In other words the assessee must deliberately avoid payment of duty which is payable in accordance with law ..." 5. Learned AR, on the other hand, has reiterated the findings of the adjudicating authority. 6. Heard both sides and perused the records. 7. We find that the appellants are not contesting the payment of service tax on Reverse Charge Mechanism, as such, which has also been appropriated by the adjudicating authority in the impugned order along with interest towards confirmation of demand of Service Tax under the category of MRSS. They are contesting imposition of penalty under s....
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.... impugned order. We also note that these payments were duly recorded in their books of accounts and they had voluntarily disclosed all these facts and records to the department and the department had gone through all these disclosures over a long period of time starting from time of audit in 2009 up to time of issuance of SCN in 2012. We also find that the issue of taxability on seconded employee, whose salaries and the expenses were being reimbursed by Indian entity was a matter of prolonged litigation and only after the judgment of Hon'ble Supreme Court in the case of CCE & ST Vs Northern Operating Systems Pvt Ltd [2022-VIL-31-SC-ST], clarity emerged on this issue. In fact, there was catena of judgments during the relevant time, wherein, ....