TMI Blog2011 (3) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... s taxable value for the purpose of payment of service tax. - Pre-deposit of penalty waived subject to deposit of service tax amount. - ST/253/09 - S/119/11/CSTB/C-I - Dated:- 14-3-2011 - Mr. P G Chacko, Mr. Sahab Singh, JJ. For Appellant : Shri M Jagtap, Authorized person For Respondent : Shri K Lal, SDR Per: P G Chacko : This application seeks waiver of pre-deposit and stay of recovery in respect of service tax of Rs.1,11,103 and equal amount of penalty. The demand of service tax is for the period from April, 2003 to March, 2006. It was raised in a show-cause notice dated 17.7.08 which invoked the extended period of limitation on the ground of suppression of facts by the assessee. In adjudication of the show-cause notice, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case. 3. The learned SDR reiterates the findings of the original and first appellate authorities. He submits that, in any case, the provisions of sec. 67 of the Finance Act, 1994 are applicable to the dispute in this case. According to these provisions, service tax was leviable on the gross amount collected by the assessee from their customers in connection with the providing of the aforesaid services. The learned SDR has also claimed support from the decision in the case of Advertising Club vs. Central Board of Excise Customs [2001(131)ELT 35(Mad.)] wherein the Hon'ble High Court, in the context of upholding the constitutional validity of service tax on advertising agents, referred to traveling expenses of the staff of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot paid on a part of this gross amount viz. reimbursable expenses, amounting to Rs.11,91,104/-. Prima facie , service tax is payable on this amount as well. 5. That the expenses incurred in connection with the providing of services were also being recovered by the appellant from their customers was suppressed before the department. These expenses were not returned in the service tax returns for the purpose of payment of tax. Prima face, therefore, the appellant indulged in suppression of material facts with intent to evade payment of appropriate tax. The plea of time-bar is, therefore, not sustainable at this stage. 6. In the result, there will be a direction to the appellant to pre-deposit an amount of Rs.1,11,103/- (service tax plus c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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