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2019 (7) TMI 1180 - AT - Service TaxRectification of Mistake - short payment of service tax under the category of ‘Clearing & Forwarding Services’ and ‘GTA Services’ - penalty - error apparent on the face of record or not - HELD THAT:- The appellants have filed ST-3 returns for the disputed period and they have not given details of GTA service tax liability. It is explained in the statement of Shri V.K.Balasubramanian that they had not reflected the details of GTA, since service tax was paid by the service recipient as per law and they were under bonafide belief that they are not required to pay any service tax. Further from statement of Shri M. Venkatraman it is also established that though they were raising invoices, they could not pay up the service tax liability as there was delay in getting payments from their customers. The appellants have filed returns during the disputed period but had not made disclosure with regard to the GTA services. Whether this was a bonafide belief or not cannot be decided in an ROM application - there is apparent error on the face of record in the observations noted by the Tribunal that the appellants have not filed any returns. In these circumstances, the entire penalty imposed cannot sustain, as they had filed returns. C&F services - Delay in payment - HELD THAT:- The penalty imposed with regard to C&F services requires to be set aside - The penalty in respect of GTA services is sustained. The penalty being composite penalty, the adjudicating authority is directed to quantify the penalty in respect of GTA services. ROM application allowed by way of remand.
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