Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2020 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 762 - CESTAT MUMBAIBusiness Support Services - reimbursement of expenses - amounts on which service tax has been demanded has been spent by Shri Ajay Kumar on transportation of the vehicles on behalf of M/s Jaika Motors Ltd. - extended period of limitation - demand of interest and penalty. HELD THAT:- Undisputed and also as admitted by the appellants in their letter dated 07.01.2013 which was in response to the summons issued under Section 14 of Central Excise Act, 1944 which by Section 83 of Finance Act, 1994 has been made applicable to service tax matters - From the definition of the Business Support Services as above and the clarification issued it is quite evident that the activities undertaken by the appellant clearly fall within the category of Business Support Services. Since the appellants had not disclosed the details of these transactions to the revenue in the ST-3 returns filed by them. Neither they have been able to establish any bonafides in non disclosure of such information to revenue - the impugned order for invoking extended period of limitation is upheld. Demand of interest - HELD THAT:- Since the demand of tax has been upheld the demand for interest will follow. It is now settled law that interest under Section 75, is for delay in the payment of tax from the date when it was due. Since appellants have failed to pay the said Service Tax by the due date interest demanded cannot be faulted - the demand of interest made under Section 75 of the Finance Act, 1994 is upheld. Penalty - HELD THAT:- It is now settled position in law that penalty under section 78 can be imposed only if the ingredients specified in the said section are present. The ingredients specified for invoking the Section 78 are identical to those specified for invoking the extended period of limitation as provided by Section 73 ibid - Since in respect of SCN, we hold that demand could have been made by invoking the extended period of limitation as provided by Section 73, we uphold the penalties imposed under Section 78 of The Finance Act, 1994. By not indicating the details of these transactions in the ST-3 returns as required under Section 70 of Finance Act, 1994 read with Rule 7 of Service Tax Rules, 1994, appellant have made themselves liable to penalty under Section 77 ibid. Hence the penalties imposed upon by the adjudicating authority under this section are upheld. Appeal dismissed.
|