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2014 (10) TMI 133 - AT - Service TaxLevy of penalty u/s 78 - Business Auxiliary service - distributor / commission agent of M/s. Vodafone Essar Gujarat Ltd - service tax with interest paid before issuance of show cause notice - Held that:- appellant started providing services in April 2007 and full payment was made in February 2008. Under these circumstances, the circular issued by the Board in 2007, wherein it was clarified that the conclusion of proceedings envisaged under sub-section (3) of Section 73 would be applicable where the Service Tax and interest are paid on ascertainment by Central Excise officers or otherwise with interest. This case is squarely covered under Section 73(3) of Finance Act, 1994 and therefore penal provision under Section 78 need not be initiated. Therefore, penalty under Section 78 is not sustainable and accordingly the same is set aside. Benefit of Notification No. 6/2005-S.T. - SSI exemption - revenue argue that SSI benefit cannot be extended when the assessee has not opted for the same - Held that:- the appellant took registration for the first time in April 2007 and did not pay any tax and only in February 2008, after coming to note that the appellant was liable to pay tax, they paid the tax. They did not file return also - appellants have to be given the benefit of SSI exemption. - Decided in favour of assessee.
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