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2023 (6) TMI 65 - AT - Service TaxLevy of interest and penalty - entire payment of Service Tax even before the issue of Show Cause Notice - Manpower services - cum-tax benefit in terms of Section 67(2) of the Finance Act, 1994 - HELD THAT:- It is seen that there is no dispute that entire amount of Service Tax as demanded in the Show Cause Notice has been paid by the Appellant even before issue of the Show Cause Notice. It is not known as to whether the Appellant was even made aware of the fact that if the interest is paid by them, the Appellant would get complete waiver of the penalties. It is also seen that the Appellant has claimed that they have not charged the Service Tax on their clients and they have paid the Service Tax based on the quantification done by the Department wherein cum-tax benefit has not been granted. From the Show Cause Notice and Order-in-Original it is seen that the Department has not disputed the appellant’s claim that they have not charged/collected the Service Tax from their clients. In such a situation when the Appellant has not charged the Service Tax on their clients they are entitled to the cum-tax benefit in terms of Section 67(2) of the Finance Act, 1994. Matter remanded to the Adjudicating Authority - Appellant should be allowed to get the benefit of cum-tax benefit and the amount of the Service Tax is required to be quantified - Appellant is required to pay the interest on the re-quantified amount of Service Tax from the time the Service Tax was due till the date on which Service Tax liability has been completed by him.
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