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2014 (4) TMI 639 - AT - Service TaxDemand of service tax - manpower recruitment agency services - Penalty u/s 76, 77, 78 - Held that:- appellants had produced a list of customers to whom they had provided service and who were exporting of their services and some of their customers had confirmed the same also. Moreover as mentioned in the statement of facts, the Board s circular clarifies that no service tax would be liable on secondary services if the secondary services are used by the exporter. The claims made by the appellant has not been considered and even in cases where letters have been received, no verification has been conducted. Nevertheless, the fact remains that the most important element required viz. the service receivers had exported service and received the consideration in convertible foreign currency has not been produced and this was admitted. Nevertheless while the demand for service tax with interest has to be sustained but in my opinion under these circumstances as discussed above, the benefit of provisions of Section 80 for waiver of penalty under Section 76, 78 of the Act is required to be extended. CENVAT Credit - Interpretation of Rule 6 of CCR - Held that:- rule is very clear and service tax is payable on a monthly basis and therefore the percentage mentioned in the rule has to be calculated on a monthly basis only. I find that no other interpretation is possible as far as this rule is concerned. Therefore the irregular utilization of the credit by the appellant has to be upheld. CENVAT Credit - Mobile phones - Held that:- amount involved is small and there is no finding or no verification as to whether company had paid the tax or not. The learned counsel submitted that mobile phones were in the name of company only and tax was also paid by the company only. Having regard to the facts and circumstances and the proceedings and investigation, I find that the credit cannot be denied. Penalties under Section 76, 77 & 78 is waived invoking Section 80 - Decided partly in favour of assessee.
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