TMI Blog2010 (5) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... They had taken up with the principal in 1999 itself and after continual correspondence, the final reply from the principal was received only on 04.01.05 in which they agreed to reimburse the service tax paid by the appellants for the subsequent periods and not for the past. Held that: the correspondence between the appellant and the principal regarding the payment of service tax also supports th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of M/s. Hindalco and even though appellant took registration in the year 1999, they were not paying service tax till March 2004. They had not filed service tax returns also. The premises of the appellant was searched on 05.07.04 and the statement of partner was recorded on 21.07.04 and appellant accepted the liability and deposited the service tax on 06.07.04, 04.08.04 and 17.08.04. The appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t waiting for adjudication order to be passed. He also submits that appellant had made claims for reimbursement of actual expenses reimbursed which has been disallowed and he also requested that the total amount received by them be treated as cum service tax amount. He also requested that taking into account the circumstances of the case, waiver of penalties under various sections of Finance Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in fact they were making efforts to get the money from the principal without realizing the consequences of non payment during such efforts. Further, the very fact that they paid the service tax after the search was conducted and without waiting for the principal to answer would show that there was an element of ignorance on the part of the appellants regarding payment of service tax. Having r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pose to the lower authorities. In view of the liberal approach however the learned consultant fairly admitted that he would not press this issue in view of the waiver of penalties under various sections of the Finance Act, 1994. Accordingly the appeal is decided by setting aside all the penalties imposed under various sections against the appellant. No further relief is allowed. (Dictated Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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