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2011 (3) TMI 942 - AT - Service TaxLiability of pay service tax - the non-residents provided services to the appellant outside India and the appellant was liable to pay service tax by reverse charge method - Therefore, the provision of Rule 6 of Service Tax Rules, 1994 is not applicable in the present case. The appellant is liable to pay service tax on the services provided by non-residents on the amount for which bills were sent by the non-resident service providers - The valuation of services is to be done as per provisions of Section 67 of the Finance Act, 1994 which provides that the service tax is payable on the gross amount charged by the service provider for service provided or to be provided - It is thus clear that in respect of services provided by the non-residents, the appellant is required to pay service tax on the amount charged by the service providers - Decided against the assessee. Penalty - Regard to the penalty under Section 78 though I find that as per records of the case certain information was not supplied to the department and was suppressed by the appellant, on verification, complete details of transactions were available in the specific records it will be justified if the penalty under Section 78 is reduced to 50% of the service tax not paid - Since the Revenue cannot produce any evidence to counter the argument of the appellant to prove any delay which was deliberate in payment, the penalty imposed under Section 76 is not sustainable
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