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2020 (1) TMI 428 - CESTAT KOLKATATransport of Goods by Road Service - reverse charge mechanism - period 2005-06 to 2009- 10 - failure to make payment of service tax as well as to take registration - demand alongwith interest and penalty - HELD THAT:- The appellant assessee is not disputing its liability for payment of Service Tax and have in fact paid the Service Tax on the basis of their calculation - Since the appellant is a service recipient and discharging the Service Tax liability under the ‘Reverse Charge Mechanism’, they are entitled to abatement of 75% under Notification No.32/2004-ST dt. 03/12/2004 as amended by Notification No. 01/2006-ST. The issue is squarely is covered in the decision in the case of M/S. SREE KANYA COMBINES VERSUS CCE, VISAKHAPATNAM-II [2016 (8) TMI 848 - CESTAT HYDERABAD] where it was held that The service tax on renting of immovable property was not paid as the issue was contentious an there were decisions in favour of assessee also. Thus, present is a fit case for invoking the provision of Section 80 and accordingly, the penalty imposed under Section 77 and 78 of the Finance Act, 1994 are set aside. The matter is remanded to the Adjudicating Authority for the limited purpose of calculating the Service Tax liability after considering that some payments were made to new Truck owners who have not issued any consignment notes. There is no liability of Service Tax in such transactions - appeal allowed in part by way of remand.
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