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2022 (10) TMI 60 - AT - Service TaxNon-payment of service tax - it is alleged that noticee is charging and collecting service tax from their clients on the taxable service provided but not depositing the same with the Government exchequer - failure to submit returns in the form ST 3 to the service tax department on due date as per the section 70 ibid read with rule 7 ibid - failure to maintain proper records under rule 5 ibid - abatement as per the Notification No 15/2004-ST dated 10.09.2004 - time limitation. HELD THAT:- It is evident from the facts of the case that the appellant are merely providing the taxable services simplicitor without any element of transfer of the material along with the service. The contracts for provision of services wherein not transfer in property occurs, qualify as service contracts simplicitor. In case of service contracts simplicitor there can be no question of abatement. In light of above observation reference made to the Notification No 15/2004-ST dated 10.09.2004. Notification No 15/2004-Service Tax, dated the 10th September, 2004 was rescinded vide n Notification No 2/2006-ST dated 01.03.2006. Hence this claim made by the appellant is under a notification which was not available after 01.03.2006. Hence the claim made under this notification is denied. Time Limitation - Suppression of facts or not - HELD THAT:- The Appellant concealed the correct taxable amount with the service tax department, until the Departmental officers initiated an inquiry in this regard. These facts were suppressed with intent to evade the payment of service tax due on various taxable services provided by them thereby facilitating the evasion of service tax payable on the said services so rendered by them. Thus it the extended period, as provided for under the proviso to sub-section (1) of section 73 ibid for recovery of such service tax not paid and/or short paid by Appellant has been correctly invoked by the revenue authorities. Penalties - HELD THAT:- When the ingredients for invocation of the extended period of limitation were present, the penalties imposed on the appellant under Section 78 of Finance Act, 1994 are upheld - As appellant had not taken registration and had not filed ST-3 returns within the prescribed time, penalty imposed under Section 77 is justified. Interest - HELD THAT:- The demand for service tax, demand for interest follows, and needs to be upheld. It is now settled law that once the tax is demandable the interest as prescribed by law will automatically follow. Appeal dismissed.
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