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2019 (3) TMI 1430 - CESTAT CHENNAIReverse charge mechanism - Security Agency Services - N/N. 30/2012-ST, dated 20.06.2012 - it was alleged that the appellants are liable to discharge 100% of the service tax without opting for reverse charge mechanism - Held that:- The appellants, who are the service providers have discharged 25% of the service tax, whereas, the service recipient has discharged and paid to the Government 75% of the service tax on services provided. Thus, it is not disputed that the services rendered by appellants have suffered service tax. Merely for the erroneous manner of discharging the service tax by opting for the benefit of N/N. 30/2012-ST, dated 20.06.2012 and discharging it to the Government under reverse charge mechanism, the demand has been raised - Since the service tax on the entire services has been paid to the Government, a further demand on such services cannot sustain. Penalty - Held that:- The situation is contravention of the relevant provisions by wrongly availing the notification benefit. Taking this into consideration, the penalty of ₹ 6,105/- imposed is required to be sustained - The impugned order is, therefore, modified to the extent of setting aside the demand of service tax but upholding the penalty of ₹ 6,150/- imposed under section 76 of the Finance Act, 1994. Appeal allowed in part.
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