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2017 (6) TMI 55 - AT - Service TaxScientific and Technical Consultancy Services - taxability - appellant received security deposit/advance payment from their clients for providing taxable service in future - Held that: - it is not in the choice of the appellant about timing of the payment of service tax. In terms of Section 67(3) when a consideration is received towards a taxable service, service tax on the same has to be paid. The appellants cannot take a plea that they will discharge service tax when they adjust the said advance amount as and when there is bill raised after provision of service. Such proposition will be against the legal provisions - demand sustainable. Extended period of limitation - Held that: - receipt of amount has not been reflected fully in the statutory returns as is evident from the narration recorded in the show cause notice - extended period invocable. Penalties - Held that: - penalties under both sections cannot be imposed. W.e.f. 10.05.2008 as a proviso has been added in Section 78 of the FA, 1994 to state that if penalty is payable under this Section, the provisions of Section 76 shall not apply for the period 10.05.2008 to 31.03.2010, penalty u/s 76 is not tenable and the same is set aside. Appeal dismissed - decided partly in favor of appellant, as regards setting aside of penalty imposed u/s 76.
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