TMI Blog2023 (1) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of service tax on the rent was entitled to Cenvat Credit of the same. Thus, the situation is wholly revenue neutral - this ground is allowed and the demand is set aside. Allegation of short payment of service tax of Rs. 24,44,446/-, due to availment of wrong and higher abatement - HELD THAT:- The appellant have done execution of new work after removing the existing structure and railing etc. This ground is allowed in favour of the appellant and set aside the demand of Rs. 24,44,446/-. Imposition of penalty under Section 77 for late filing of return and u/s 78 of FA - HELD THAT:- The show cause notice have been issued by invocation of extended period of limitation. Further, prior to issue of show cause notice dated 13.07.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , after examining the ST-3 Returns, balance sheet and other relevant documents and after obtaining clarifications from the appellant-assessee, it appeared to revenue that appellant have not paid service tax of Rs. 2,90,628/- under RCM of renting of immovable property (office) in respect of rent charges paid to its Director, Mr. Mufat Singh Rao. It further appeared that appellant have short paid service tax of Rs. 24,44,446/- due to availment of wrong or higher abatement, as it appeared that the appellant have done repair and maintenance work but have claimed higher abatement of 60% available for new work. It further appeared that appellant is liable to penalty for late filing of ST-3 Returns and is also liable to pay interest on delayed pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ature used is repair and maintenance but, in fact, the appellant have done removal and dismantling and, thereafter, have done the whole construction anew. This is evident from the scope of work which mentions dismantling including removal of plaster and redoing the work, further supply of material mentions that all materials required for the work shall be procured by the contractor at its own cost and charges. Quantities mentioned in BOQ are tentative in nature. Billing and payment shall be done as per actual measurement done at site, duly certified by site in charge. The contractor will get all the materials duly approved by the client s architects before supply/execution. Thus, the appellant in fact has done fresh work of re-constructio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant-assessee. Accordingly, he prays for setting aside the penalty and/or for substantial reduction of quantum of penalty. 5.1 Learned DR relies on the impugned order. 5.2 Having considered the rival contentions, I find that the show cause notice have been issued by invocation of extended period of limitation. Further, prior to issue of show cause notice dated 13.07.2020 appellant have admittedly filed the service tax returns, about two years prior to it in the year 2018. In this view of the matter, I reduce the quantum of penalty to Rs. 2000 per return or a total penalty of Rs. 6000/- under Section 77 r/w Rule 7C of Service Tax Rules. 6. Appellant further assails the demand of interest under Section 75. It is contended that thre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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