Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2009 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (7) TMI 354 - AT - Service TaxFailure to pay service tax – wilful mis-statement or fraud – intent to evade – respondents was engaged by M/s. Mukand Limited for raising of iron ores from Mines, Processing them to the required grade and supplying the same to principal - original authority found that during the period 16-6-2005 to 31-12-2005, the respondents had provided “Business Auxiliary services” to M/s. Mukand Ltd. by undertaking the above activity - Vide the impugned order, the first appellate authority found that no service tax was payable for the service rendered prior to 16-6-2005 and remanded the matter to the adjudicating authority to determine the exact tax liability - We observe that the original authority found that respondent had contravened provisions of law but were not guilty of fraud or collusion or willful misstatement with ma/a fide intention to evade payment of service tax – impugned order setting aside penalty under Section 76 and 77, is justified - We find that in the instant Case, the activity undertaken by the appellants is essentially Mining Service which became taxable with effect from 1-6-2007. Therefore the appellants are not liable to pay service tax on the impugned activity under the category “Business Auxiliary Service” during material period – Revision order imposing penalty under section 78, not sustainable
|