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2015 (11) TMI 1041 - AT - Service TaxCenvat Credit - input services - event management services - Services are not related to their output services being Advertisement agency service - Undervaluation of service - Held that:- The service of advertising agency as pointed out from the definition includes exhibition, display etc. It has to be noted that the period is prior to 1.4.2011 when the definition of input service had a wider ambit. The activities as explained and borne out from records establish that event management services availed by appellant is related to the output service of providing advertisement services. Again, the denial of credit on the ground that they are not registered for event management services is not tenable. The payment of service tax is not disputed. The grounds on which credit has been denied is too flimsy and feeble. Therefore I hold that event management services being input services would be eligible for credit. Levy of penalty for short payment of service tax - Held that:- In a few cases in which the commission received was more than 15% the appellants omitted to pay service tax for the higher amount of commission received. It occurred only by mistake because generally the commission received is 15% and service tax was being paid on 15%. The learned counsel submitted that the short payment occurred only with regard to 18 cases and on coming to know about it the appellant deposited the tax with interest even before the issuance of show cause notice. A penalty of ₹ 48,705/- is imposed alleging suppression under Section 78 of the Finance Act, 1994, which has been upheld by the impugned order. - appellant has put forward a plausible explanation for the failure to pay. I find that it is a fit case for invoking the provisions of Section 80 of the Finance Act, which provides that, no penalty shall be imposable if the assessee establishes there was reasonable cause for the failure. I hold that the penalty imposed is not justified and has to be set aside - Decided in favour of assessee.
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