9911796707
TMI Blog2011 (9) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... oncluded in February 2005, it was noticed that the respondents have collected amounts under a heading 'Service Charges-Compliance' from 100% EOUs and units in STP during the period 2002-03 and 2003-04 and have not paid the Service Tax on the said amounts collected. In pursuance of show cause notice dated 15.5.2005, the original authority confirmed the Service Tax amounting to Rs. 3,40,385/- along with interest and imposed penalty of equal amount under Section 78 of the Finance Act, 1994, besides penalties under Sections 76 & 77. On appeal by the assessee, the Commissioner (Appeals) has set aside the order of the original authority and hence the department is in appeal. 4. The learned SDR reiterating the 'Grounds of Appeal' submits t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification to go to the CHALR provisions and enlarging the scope of taxable service of a CHA. It is to be noted that no provisions of CHALR is sought to be relied upon by the Finance Act, 1994 in defining the scope of CHA services. 6. We have carefully considered the submissions from both sides and gone through the records. The respondents have collected the amounts under the heading 'Service Charges-Compliance'. The respondents have not indicated the actual nature of work undertaken by them for which they have billed the clients as above except stating that the respondents received said amount for collecting duty draw back for their customers from the Customs department. The claim of the respondents that the processing of the drawba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imed that they entertained bonafied belief that the amounts collected are not part of CHA services and, therefore, no penalty was impossible on them and in this regard, they relied on the decision of the Tribunal in the case of Star Neon Singh Vs. Commissioner of Central Excise, Chandigarh [2002 (141) ELT 770 (Tri. Delhi)]. The Commissioner (Appeals) has allowed the appeal on merits, without considering submissions on other issues raised by the assessees in their 'Appeal Memorandum'. 8. In view of the above, we set aside the findings of the Commissioner (Appeals) on merits and hold that the impugned activities will also fall under CHA services. However, we remand the matter to the Commissioner (Appeals) for fresh consideration on ot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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