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2016 (11) TMI 281 - AT - Service TaxGTA service - whether transportation subsidy received from the Government of Maharashtra can treated as part of the gross value of the GTA service? - reliance placed on the decision of Commissioner of Central Excise, Bangalore Vs. Mazagon Dock Ltd. [2005 (7) TMI 105 - SUPREME COURT OF INDIA] - Held that: - The Hon’ble Supreme Court held that the subsidy which is given by the Government is not paid by the buyer of the goods. Similarly, in the case of service the subsidy of transportation given by the Government is not paid by the service provider. The gross amount of the service can only be taken the value which is paid payable by the service recipient. In the present case also, the subsidy given by the government, since not a part of the amount paid by the service recipient to the service provider, the subsidy cannot be included in the gross value of service. Therefore, the ratio of the Hon’ble Supreme Court judgment is directly applicable to the present case. The subsidy amount will not attract service tax. The adjudicating authority is directed to re-quantify the service tax liability by reducing the amount of subsidy. Waiver of penalty - the appellant has shown reasonable cause for non payment of service tax. Therefore, they are entitled for the waiver of penalties imposed under Section 76 & 78 invoking Section 80 of the Finance Act, 1994. - the Penalties under Section 76 & 78 are waived - late fee imposed by the Ld. Commissioner for an amount of ₹ 2,000/- is upheld - appeal allowed - decided partly in favor of appellant.
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