Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (4) TMI 199 - AT - Service TaxDispensation of pre-deposit - Confirmation of service tax liability and imposition of penalty - Commission paid to foreign bankers under the category of banking and other financial service on reverse charge basis - Appellant claimed that demand is barred by limitation - Held that:- the notice stand issued in the April, 2010 for confirmation of demand of duty relating to the activity undertaken in December, 2006. The said activity of the assessee was not performed in India and the demand was confirmed on the reverse charge basis, in respect of commission paid to foreign bankers for raising the capital in foreign countries. During the relevant period, there was lot of confusion in the field, and law was not clear either to the assessee nor to the Revenue itself. Lot of litigation was going on the legal issue of payment of tax on reverse charge basis. So, in the absence of any positive evidence to reflect upon the malafide by the appellant, it cannot be said that the non-payment of service tax, if at all, was with an intention to avoid the same. Hence, the appellant has good case on limitation. Therefore, as the appellant has already deposited the amount of ₹ 4.88 lakhs approx., by treating the same as sufficient, the condition of pre-deposit of the balance amount of tax and entire amount of penalty and interest is dispensed of. - Pre-deposit dispensed of
|