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2017 (4) TMI 1283 - Commission - Service TaxPenalty - Classification of services - industrial painting and mainly doing the work for M/s. BPCL, M/s. HPCL and M/s. Bombay Paints - whether classifiable under management maintenance or repair service or under Business Auxiliary Service? - Held that: - It is a case where almost entire Service Tax liability had been timely discharged by the applicant by genuinely misclassifying the services rendered by them incorrectly under mistaken belief that the same was classifiable under Business Auxiliary Services rather than Management maintenance and Repair services - By misclassifying the services, the applicant has not gained financially since over ₹ 65 lakhs of Service Tax was already paid and Service Tax rates on both the services were the same - Slight short payment of Service Tax of ₹ 43 471/- has been attributed to accounting and calculation errors, which too stands paid by the applicant along with interest leviable thereon. No case whatsoever is made out to impose any penalty on the applicants. Such frivolous SCN should not have been issued in the first place. Immunities to the applicant are granted under Section 32K(1) of the Act as made applicable to Service Tax - decided in favor of applicant.
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