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2020 (7) TMI 638 - AT - Service TaxImposition of penalty u/s 76 and 78 of FA - Non-payment of service tax - Business Auxiliary Services - appellant is incurring commission amount for payment to the selling agents located outside India - period June 2005 to March 2009 - demand paid on being pointed out, before issuance of SCN - Revenue Neutrality - HELD THAT:- The applicability of service tax on commission amount paid to the service provider located outside India is not in dispute. The assessee has already deposited the service tax with applicable interest well before the issue of SCN - also, the levy of service tax on services received from outside India was a new concept and the same was made applicable only w.e.f. April 2006. There was an ignorance on the part of the assessees regarding the service tax liability on import of services from outside India. The appellant herein immediately discharged payment of service tax on being pointed out without disputing the tax liability. Revenue Neutrality - HELD THAT:- The service tax amount if paid would have been available as credit or refund since the same has been used in making export of goods and the situation would have been revenue neutral. Penalty set aside - other part of demand upheld - appeal allowed in part.
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