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2021 (10) TMI 233 - HC - Service TaxValidity of order of settlement commission whereas service tax liability has been settled at a certain sum with interest and penalty - petitioner discharged service tax liability @50% instead of @100% and balance 50% of the service tax paid by the service provider - manpower services - double taxation - HELD THAT:- RCM was changed to 100% qua the consumer w.e.f. 01.04.2015; however, inadvertently, the Assessee continued to pay 50% and the service provider paid the remaining 50%; thus, whatever is due to ceaser has reached his hands, is true; in fact, the CBEC vide Circular No. 341/18/2004 had clarified that the reverse charge mechanism should not lead to double taxation; in other words, once the tax liability is discharged regardless of the persons who discharge, the Assessee cannot be asked to pay the tax again. the Settlement Commission has to keep in mind the recommendation of The Wanchoo Committee that if the tax payer takes the initiative and voluntarily discloses the facts of his alleged deviations to their full extent, he should not be subjected to criminal proceedings and that pecuniary settlement should put the matter to rest. The High Courts of Bombay, Gujrat and Punjab & Haryana have taken the view that when the duty paid character and receipt are not in doubt, the credit cannot be denied relying upon procedural rules - reliance can be placed in the case of COMMISSIONER OF C. EX. & CUS., VADODARA-II VERSUS STEELCO GUJARAT LTD. [2010 (2) TMI 307 - GUJARAT HIGH COURT]. When there was no dispute as to receipt of the inputs/services or the genuineness of the claim, the Settlement Commission could not have refused to admit the photostat copies of the documents; petitioners are ready & willing to produce the originals of the invoices and therefore, the matter requires remittance for fresh consideration. The matter is remitted to the Settlement Commission for consideration afresh - petition allowed by way of remand.
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