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2021 (6) TMI 25 - AT - Service TaxReverse charge mechanism - Levy of service tax - Banking and Financial Services - service provider located outside India - time limitation - penalty - revenue neutrality - various service provider viz. Merchant Bankers, Lead Managers, Advisors, Financial Advisors, Principal Agents, Legal Advisors, Management Consultants, Under writers, etc. who are based outside India and have charged fees for their services in Foreign Currency for raising funds through ECB & FCCB. - HELD THAT:- The appellant has neither raised the issue of taxability seriously before the adjudicating authority nor even in the appeal memo filed before us. It is also observed that the appellant have vehemently argued that their case is covered under Section 73(3) Finance Act, 1994. Section 73(3) applies only in such case where the assessee undisputedly accepting the liability discharged the service tax and interest before issuance of Show Cause Notice subject to some other conditions as laid down in Section 73(3) therefore, since the appellant having not contested the issue of taxability of service at any point of time before the adjudicating authority as well as in this appeal, we hold that that the service received by the appellant is liable to service tax. Time Limitation - Penalty - HELD THAT:- The adjudicating authority has not verified any fact related to revenue neutrality - the appellant have submitted certain documents before us showing that they were eligible for Cenvat Credit which they have already availed in respect of Service tax paid by them and during the relevant period they have discharged the excise duty of a substantial amount from their PLA account - the limitation as well as imposition of penalty needs to be reconsidered on the point of the revenue neutrality particularly on the document submitted by the appellant. Appeal allowed by way of remand.
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