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2024 (9) TMI 1547 - AT - Service TaxFailure to discharge due Service Tax liability - Late payment fees - penalties - extended period of limitation. HELD THAT - Undisputedly appellant has paid service tax on the entire value of the service provided under the category of cleaning services. In respect of the remaining services they have paid service tax on the margin money i.e the value of the service provided after deducting the expenses made by them towards the provision of such service. This fact has been reflected in the profit and loss account of the appellant. Commissioner (Appeal) has siught to disallow the expenses incurred for provision of this service by stating that the appellant has not produced any documentary evidence to the effect that they have not received any amount over and above the value shown as receipt for provision of this service. During the period of dispute appellant has incurred the expenditure towards the provision of services other than the cleaning services. However these expenses could not be called as amounts received as Pure Agent . The value of the taxable service as has been rightly held by the first appellate authority shall be the gross amount received for the provision of service as per Section 67 of the Finance Act 1994. Hence claiming deduction of these amounts from the gross amount received could not be a permissible deduction as per the Section 67 or Rules made there under. These cannot be said to be reimbursable expense also as claimed by the appellant. Hence on merits there are not much force in the submissions made by the appellant. Time Limitation - HELD THAT - In the impugned order or order in original/ show cause notice nothing has been stated as to how the mere fact of not disclosure of certain amounts in the ST-3 return would have constituted suppression with the intention to evade payment of service tax - no reason put forth in the show cause notice or the orders of lower authorities for holding that the appellant has suppressed the facts with intent to evade payment of service tax - there are no merits in the impugned order to the extent it uphold the demand by invoking extended period of limitation. As entire demand has been made by invoking the extended period of limitation the same cannot be upheld. Late payment fees - HELD THAT - It is found that appellant had filed the ST-3 return after delay of about 65 days for which late payment fees has been imposed. The fact of delay in filing the ST-3 return has not be countered by the appellant. Imposition of late payment fees is a legal obligation and has no relation with the evasion of tax - the demand made towards the late payment fees as prescribed by statute is upheld. The appeal is partly allowed to the extent of setting aside the demand of service tax interest and penalties imposed under Section 78 on the ground of limitation. However the penalty imposed for late filing of return is upheld.
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