TMI Blog2013 (5) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... ch services rendered would be available to the appellant themselves as cenvat credit which can be utilized for discharge of any excise duty on the final goods manufactured and cleared by the appellant. On the factual matrix the issue is to be decided in favour of the appellant, as regards penalty imposed as that during the period service tax liability under reverse charge mechanism was being disputed at various forums and attained finality, after the judgment of the Honble High Court of Bombay in the case of Indian National Ship Owners Association [2008 (12) TMI 41 - HIGH COURT OF BOMBAY]. Also Dinesh chandra R. Agarwal Infracon Pvt. Ltd. (2009 (10) TMI 395 - CESTAT, AHMEDABAD) and Sagar Enterprises (2009 (10) TMI 242 - CESTAT, AHMEDABAD) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 75 ibid and for imposition of penalties under sections 77 and 78 of the Finance Act, 1994. The appellants have paid service tax of Rs.3,71,171/- along with interest Rs.40,900/- on 31/08/09. 3. The said show cause notice was adjudicated and vide impugned order dated 25.03.10, Adjudicating Authority confirmed the demand of service tax of Rs.3,71,171/- and appropriated the amounts paid, ordered for recovery of interest Rs.40,900/- and appropriated the same under section 75 ibid. imposed a penalty of Rs.92,793/- i.e. 25% of the service tax determined in terms of the provisions of section 78 ibid.(inserted vide section 159 of the Finance Act, 2003) and Rs.1,000/- under Section 77 of the Finance Act, 1994. 4. Being aggrieved with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y rejected the appeal filed by the assessee and allowed the appeal filed by the Revenue. 6. The ld. Counsel on behalf of the appellant would submit that the appellant had before issuance of show-cause notice discharged the entire service tax liability along with interest. It is his submission that as their issue was of discharge of service tax liability on reverse charge mechanism under the Management and Business Consultancy Services, there was a confusion. It was also his submission that failure to pay service tax is due to misinterpretation of the provisions. It is his submission that as the amount of tax liability is discharged before the adjudication order, there is no ground to impose penalties. 7. The Additional Commissioner (AR) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultancy Services from an overseas Consultancy Service and these services are received by the appellant for the advises given on marketing. Understandably, service tax paid on such services rendered would be available to the appellant themselves as cenvat credit which can be utilized for discharge of any excise duty on the final goods manufactured and cleared by the appellant. On the factual matrix as noted hereinabove, I find that the issue is to be decided in favour of the appellant , as regards penalty imposed, I find strong force in the contentions raised by ld. Counsel, that during the period service tax liability under reverse charge mechanism was being disputed at various forums and attained finality, after the judgment of the Honb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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