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2018 (2) TMI 1845 - Commission - Service TaxShort-payment of service tax - additional liability towards Service Tax in excess of ₹ 3 lac - part amount was admitted and was paid alongwith cess and interest thereon - admission of the applications for settlement - adjustment of total amount of duty and interest from the amount already deposited - grant of immunity from payment of penalty as well as immunity from prosecution under Section 32K of the Act - applicant only disputed ₹ 37,391 and paid ₹ 2,997/-. Thus, the total disputed amount was ₹ 37,391/- - abatement at 75% or 30%? - N/N. 2/2013-S.T., dated 1-3-2013. Held that:- From 1-3-2013 any unit would qualify for taxable amount of 25% if either the carpet area is less than 2000 sq. ft. or consideration is less than 1 crore; in other words, 30% taxable value would only be applicable when the carpet area is more than 2000 sq. ft. and consideration is more than 1 crore - In the present case, as is undisputed by the Department, the consideration is less than 1 crore on all the units on which the applicant was claiming the exemption and therefore, for the period from 1-3-2013 to 7-5-2013, they are duly eligible for claiming the exemption of 75% of the value and taxable amount would be 25%. Since during the period from 1-3-2013 to 7-5-2013, the exemption of 75% was given to residential units having carpet area less than 2000 sq. ft. or where even consideration is less than one crore and since the consideration received was less than one crore in the case of the applicant during the period from 1-3-2013 to 7-5-2013, the exemption notification is applicable to them and they have to pay tax on 25% of the amount charged. Accordingly, ₹ 37,391 demanded by the Department does not sustain. Penalty - Held that:- The applicant has completely co-operated with the Department during the period of audit and accepted the non-paid amount which was apparently a result of non-comprehension of technicalities relating to reverse charge mechanism. The applicant has also co-operated with the Commission while pleading his case and the Commission is of the view that the applicant has made a full disclosure of his taxable amount and paid the tax immediately on detection without any delay. (The audit was conducted from 8-2-2014 to 11-2-2014 and non-payment was detected and the payment was made on 26-2-2014 i.e. barely within 15 days). Thus, the Commission is convinced that the applicant had no intention to evade tax and decides not to impose any penalty on the applicant. Prosecution - Held that:- The Bench considers it a fit case for grant of immunity from prosecution to the applicant. Application disposed off.
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