Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2015 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (12) TMI 491 - AT - Service TaxLevy of penalty for late payment of service tax - bonafide mistake - Tax on arranger fees - Imposition of penalty - Held that:- Appellants having come to know about their liability to pay service tax as the recipient of the service, immediately paid the entire amount of service tax along with education cess amounting to ₹ 67,62,355/-. We also find that the appellant have remitted the interest amount of ₹ 5,73,225/- on 25.11.2008, for delayed payment of service tax. They have filed challan for proof of payment of interest. The appellant assessee on being informed about their liability to pay service tax have readily accepted and discharged their liability in full, which is not in dispute. Having regard to the facts and circumstances of this case, which show that the appellants were eligible for cenvat credit on the service tax paid on the reverse charge mechanism, we find that there is bonafide reason for invoking sec. 80. Further, we also find that this is a case where the appellants have been able to show reasonable cause for delayed payment under bonafide belief as to taxability of service and in view of the revenue neutral situation, we find that the penalties imposed on the appellants cannot be sustained and has to be set aside. In the result, the amount paid towards service tax and interest thereon and appropriated is sustained and penalties imposed on the appellants are set aside. - Decided partly in favour of assessee.
|