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2022 (4) TMI 831 - AT - Service TaxLevy of Service tax - GTA service - Manpower Supply Agency and Security Service - reverse charge mechanism - revenue neutrality - imposition of penalties - HELD THAT:- The appellant admittedly has paid the service tax chargeable from them under reverse charge mechanism, on 31.10.2015, which was reflected in the return filed for the period 2014-15, which was filed on 21.01.2016. Further, appellant has also informed this fact of tax having been deposited vide letter dated 21.03.2017 before the Adjudicating Authority. Further, it appeared that the Adjudicating Authority has failed to take notice of the same as such representation has not been considered in the adjudication order. The appellant is manufacturing and clearing dutiable goods and are entitled to take cenvat credit of service tax payable under reverse charge mechanism. Hence, the situation is revenue neutral. In this view of the matter, the demand of ₹ 1,97,054/- as well as the penalty imposed under Section 78 of equal amount. Levy of penalties - HELD THAT:- So far penalty under Section 70 read with Rule 7(C) is concerned, the same is excessive and is reduced to ₹ 5,000/- - So far penalty under Section 77 is concerned, the same is imposed for alleged violation of Rule 5(2) of Service Tax Rules, which provides that every assessee soon after filing of their ST-3 return for the first time shall provide a list to the Range Superintendent as regards the details of records, books of accounts maintained by them. Further, there is no alleged violation of the provisions of Section 66B and Section 68 read with Rule 5(2). Accordingly, penalty of ₹ 10,000/- under Section 77 is set aside. Appeal allowed.
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