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2014 (4) TMI 994 - AT - Service TaxClaim of service tax from the recipient of services - Levy of Penalty u/s 76, 77 and 78 - Commissioner partly allowed the appeal and deleted the penalty imposed under Sections 76, 77 and 78 while upholding demand of service tax and interest, confirmed by the primary authority - Held that:- Receipt of a taxable service, in the factual setting of this case, does not give rise to a liability to remit service tax. Inherence of the liability to tax is on the provider of the service; not the recipient. The appellant’s plea that it was only the recipient of the taxable service, is therefore a plea that goes to the jurisdictional of the proceedings. The rejection of this contention by the Appellate authority is therefore fatal to the Appellate order which therefore invites invalidation on this singular ground. While the appellant company was remiss in not pleading the exact nature of the transaction and in furnishing evidence that it was neither the landlord nor the provider of the taxable service but was only the recipient, the fact remains that in the present case as in many such cases, adjudicating authorities are seen to be avoiding the fundamental adjudicatory discipline, namely in requisitioning the relevant transactional documents to identify the nature of the transaction. Such negligence is compounded, in the facts and circumstances of the case, by the fact that as per the letter dated 17.11.2009 (preceding the show cause notice) addressed by the Assistant Commissioner,Service Tax, Faridabad to the assessee’s company, it is clearly stated that one of the Directors was receiving rent. Order not sustainable - Matter remanded back - Decided in favour of assessee.
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