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2016 (1) TMI 1014 - CESTAT MUMBAIJob work - Business Auxiliary services - Default in discharging their service tax liability even though they continued to bill their principals for service tax. - financial difficulties - The appellant claims that their activity is manufacture and hence not liable to be taxed as "business auxiliary service", that they were eligible for exemption under notification no. 8/2005-ST dated 01/03/2005. Held that:- appellant had applied for registration as provider of ''business auxiliary services"; rendering of job-work is one of the activities within its ambit. At no stage have they contended that this was a classification decided upon by tax authorities. Having registered themselves as a service provider and paid taxes as provider of "business auxiliary service" for a certain period, they are bereft of any ground to claim error in classification. In the absence of any justification, procedurally or substantively, to seek a revisit of classification of the service rendered by the appellant, there is no legal provision to do so. The plea of taxability and any exemption from service tax is irrelevant in the context of the inclusion of service tax in the amounts billed to their principals as job-work charges. It is seen that the appellant has collected service tax along with consideration from its principals for service rendered but failed to deposit the same in the government account. By this act of omission, the plea of leniency in the matter of penalties will not evoke a sympathetic response - demand confirmed.
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