Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 926 - AT - Service TaxImposition of penalty - Commercial Training or Coaching Services - service were brought under the service tax net w.e.f. 1/7/2003 - period of dispute is 1/7/2003 to 31/3/2004 - whether penalty is imposable when the amount of service tax and interest was paid much before the issuance of show cause notice and whether show cause notice can be issued when the details of payment of amount of service tax and interest was intimated to the Jurisdictional Superintendent in view of Section 73 (3) of the Finance Act, 1994 - Held that: - Commercial Training or Coaching services were brought under the service tax net w.e.f. 1/7/2003 only. I find that the appellant got himself registered and started making statutory compliances by depositing the taxes and filing the ST-3 Returns. The only issue in dispute was regarding the amount of fees collected/received for the period prior to 1st July, 2003 for which services were to be provided at a later date. The said advance fees were collected prior to 01/07/2003. It is seen that initially, there was a Board’s circular to the effect that such collection of fees prior to 01/07/2003, though for the services to be rendered after the said date would not get included in the value of the services. Subsequently, the Board issued another circular dated 05/11/2003, clarifying that since services were provided after 01/07/2003, any amount collected towards such service before the said date would be leviable to service tax. It appears that the appellant did not make any attempt to evade payment of service tax. The said services were made leviable to tax w.e.f. 01/07/2003 and such collection of fees amount at the start of the year, when the services were not taxable, cannot effect upon any malafide on the part of the appellant - issues being purely interpretative in nature with no malafides, penalty is set aside - appeal allowed - decided in favor of appellant.
|