TaxTMI 
TaxTMI 
2026 (6) TMI 764
X X X X Extracts X X X X
X X X X Extracts X X X X
....mounting to Rs. 1,05,44,311/- along with interest under Section 75 of the Finance Act, 1994 has been confirmed and penalties under section 76, 77 and 78 of the Finance Act, 1994 have been imposed. 2. The facts in brief are that the appellant is engaged in providing Architect Services and was duly registered with the Service Tax Department. The records reveal that the appellant had been regularly filing ST-3 returns and discharging service tax liability on the amounts received from it's clients. During Audit conducted in September, 2011, it was noticed that service had allegedly not been discharged on certain amounts representing the TDS deducted by customers while making payments to the appellant. 3. Consequently, Show Cause Notice da....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... following decisions: i) CCE & ST, LTU, Bangalore Vs Adecco Flexione Workforce Solutions Ltd., [2011 (9) TMI 114 (Kar HC)] ii) Sign Sites Publicities Vs Commissioner of Service Tax, Chennai [2017 (8) TMI 795 - CESTAT, Chennai] iii) Tarachandra Engineering Pvt Ltd., Vs CCE, Vadodara-I [2015 (1) TMI 767 - CESTAT, Ahmedabad] iv) Chennai Petroleum Corporation Ltd., Vs Commissioner of GST and Central Excise, Chennai [2023 (9) Centax 91 (Tri-Mad)] v) Pushpam Pharmaceuticals Company Vs Collector of Central Excise, Bombay [1995 (78) ELT 401 (SC)] vi) Continental Foundation Joint Venture Vs CCE, Chandigarh-I [2007 (216) ELT 177 (SC)] vii) Uniworth Textiles Ltd., Vs CCE, Raipur [2013 (288....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rt as well as various decisions of the Tribunals have constantly held that where consideration received is inclusive of tax, the same must be treated as Cumtax value and service tax is required to be recomputed accordingly. 13. The records placed before us indicate that Adjudicating Authority has not granted full Cum-tax benefit while determining the demand. We find considerable force in the appellant's contention that after inclusion of TDS amount and re-computation of Cum-tax basis, the actual tax liability gets substantially reduced. The Department has not produced any evidence showing that the consideration received by the appellant was exclusive of service tax. Accordingly, we hold that the appellant is entitled to Cum-tax benefit w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ment of Audit. The remaining liability for October 2010 to March 2011 was also discharged along with applicable interest before adjudication. The explanation offered by the appellant regarding financial hardship and delayed realization from clients appears plausible and has not been rebutted by any contrary evidence. 17. The Tribunal in Sign Sites Publicities, supra and Tarachandra Engineering Pvt Ltd, supra, has held that genuine financial hardship coupled with payment of tax and interest constitutes reasonable cause for waiver of penalties. Section 80 of the Finance Act, 1994 as applicable during the relevant period, empowered the Authorities to waive penalties upon proof of reasonable cause. Considering the facts of the case, we are s....