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2015 (4) TMI 744 - AT - Service TaxDischarge of service tax liability by other branch office - whether the service tax payment made by the appellant's Mumbai unit could be considered as due discharge of service tax by the appellant - Penalty u/s 76 & 78 - Held that:- Some excess payment of service tax has been paid by the appellant's Mumbai unit but whether that excess payment was with respect to the appellant's unit at Silvassa is not clear. Appellant has approached their Mumbai Bank branch in September 2014 to either provide a certificate or give them the copies of TR-6/GAR -7 challans/Bank Certificates that during the period 1998-99 to 2004-05 entire service tax also was paid at Mumbai for the Silvassa unit. A copy of one such challan No. 05/2000-2001 has been furnished by the appellant which gives the assessee code number and address of appellants Mumbai office. There is no indication on the challan that this amount is paid with respect to appellant's Silvassa unit. In the absence of any such co-relation, it can not be said that appellant has discharged the service tax liability of Silvassa unit at their Mumbai unit/office. Adjudicating authority has correctly confirmed the service tax liability along with interest. So far as imposition of penalties under section 76 and 78 of the Finance Act, 1994 are concerned, appellant has claimed the benefit of Section 80 of the Finance Act, 1994 to argue that they were under the reasonable belief that service tax with respect to Silvassa unit has been properly discharged. - appellant had paid some excess amounts with respect to their Silvassa unit. Appellant thus has a reasonable cause to hold that service tax liability of Silvassa unit was discharged in Mumbai. However, due to lack of co-relating documents, it is not possible to establish that the entire service tax liability of Silvassa unit has been discharged. In view of the above, this case is fit for invocation of Section 80 to hold that penalties are not imposable upon the appellant under Section 76 and 78 of the Finance Act, 1994, even if extended period is applicable in these proceedings. - Decided partly in favour of assessee.
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