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2015 (9) TMI 830 - SETTLEMENT COMMISSION, CUSTOMS AND CENTRAL EXCISE, MUMBAISettlement of cases - Admissible of application for settlement - Construction of residential complex service - sale of residential flats in their newly constructed Residential Complex to the prospective buyers - period from 1-7-2010 to 30-9-2011 - Held that:- It is observed that because of uncertainty about the taxability of the said service during the relevant period, the applicant failed to obtain registration and file ST-3 Returns in the prescribed manner which was an essential condition for the admissibility of an application under Section 32-E Proviso (a) of the Central Excise Act, 1944. The Bench observes that adequate circumstances existed for non-filing of the returns in the present case as the entire issue of taxability, of ‘construction of residential complex service’ was before the Hon’ble Bombay High Court. Therefore, taking cue from the spirit of the said amendment of Section 32E of the Central Excise Act, 1944 with effect from 6-8-14, the Bench takes a pragmatic view and considers the subject application admissible even though it was filed prior to the subject amendment. The Bench observes that the applicant have discharged the entire tax liability of ₹ 41,72,645/- as demanded in the SCN along with interest. They have co-operated with the investigation and in the proceedings before this Commission. Accordingly, the application filed by the applicant is settled in terms of the following order passed under sub-Section (5) of Section 32-E of the Central Excise Act, 1944 as made applicable to Service Tax vide Section 83 of the Finance Act, 1994. - The Service Tax payable in this case is settled at ₹ 41,72,645/-. The Bench imposes a penalty of ₹ 1,00,000/- (Rupees one lac only) on the applicant for the violations as alleged in the SCN. Immunity is granted to the applicant from payment of penalty in excess of the said amount. - immunity granted from prosecution .
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