TMI Blog2008 (2) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee is directed against the order of Commissioner (Appeals) dated 12.01.2007 upholding the adjudication order of the Joint Commissioner dated 04.10.2006. By the said order, the Joint Commissioner held that the appellant is liable to pay Service Tax amounting to Rs. 6,39,734/- and Education Cess amounting to Rs. 5,497/- for the period April, 2002 to September, 2005. Penalties @ 100/- per day under Section 76; Rs. 1000/- under Section 77 and Rs. 6,45,231/- (the amount equal to the Service Tax and the Education Cess) under Section 78 were also imposed. The appellant was also directed to pay interest at the appropriate rate on delayed payment of Service Tax in terms of Section 75 of the Act. 2. The appellant is a clearing fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly submitted that the entries in the books of accounts with respect to alleged receipt of commission and handling charges could not lead to the inference that payment had been received. The entry merely meant that the payment had accrued to the appellant from TISCO and the Tinplate Company of India Ltd. It was submitted that unless payment is actually received by the service provider, there is no occasion for making payment of Service Tax in terms of Rule 6(1) of the Service Tax Rules, 1994. 4. Section 66 of the Act provides for levy of Service Tax on the value of "taxable services" referred to in various sub-clauses of Clause (105) of Section 65 to be collected in such manner as may be prescribed. Section 68 deals with payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l or proprietary firm or partnership firm, the service tax shall be paid to the credit of the Central Government by the 5th of the month immediately following the quarter in which the payments are received, towards the value of taxable services." The provision was amended yet again by Notification No. 39/2007-ST dated 12.09.2007, as follows : "Payment of service tax - (1) The service tax shall be paid to the credit of the Central Government. (i) by the 6th day of the month, if the duty is deposited electronically through internet banking; and (ii) by the 5th day of the month, in any other case immediately following the calendar month in which the payments are received, towards the value of taxable services:" 6. It may be men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5th of the following month immediately following the calendar month in which the payments are received towards the value of taxable services (an obvious reference to Notification No. 07/2005 dated 01.03.2005). He further observed that the payment of Service Tax is contingent upon the value of the taxable service rendered. In other words, the payment of Service Tax does not depend upon the reimbursement of the Service Tax by service recipient to the service provider and mere realization of taxable value is enough to attract the service tax liability. Since the appellant has already received the value of the taxable service provided, from his customers, service tax liability gets fastened on him. 8. As seen above, the liability for t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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