TMI Blog2013 (5) TMI 453X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant. - levy of service tax upheld. Regarding penalty - held that:- there cannot be any malafide intention attributable to the actions of the appellant in not discharging the service tax liability under the category of Intellectual Property Right Services. Be that as it may, we find that the entire amount of service tax liability stands deposited along with interest before the issuance of show cause notice. We also note that the appellant was eligible to avail Cenvat credit on the such service tax paid, as it was in relation to the Plant and Machinery, which is used for manufacturing of finished goods. - levy of penalty deleted - decided in favor of assessee. - Appeal No. ST/154 of 2010 - - - Dated:- 3-2-2012 - Mr. M.V. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red with the Service Tax Department. The said notion was entertained by the Service Tax Department on the ground that the appellant had purchased Drawing and Designs which is nothing but transfer of Intellectual Property Rights to the appellants. After investigation and calling for the records from the appellants, the Revenue authorities i.e. Service Tax Authorities issued show cause notice dated 20.10.2008 to the appellants, demanding service tax under the category of Intellectual Property Rights Services, as per the provisions of Section 73 of the Finance Act, 1994, interest thereof and penalties under Sections 76, 77 and 78 of the Finance Act, 1994. The appellants contested the show cause notice by their reply dated 15.12.2008 and submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... discharged on Drawing and Designs, there would not be any other duty or tax liability on them. It is his submission that despite this, the entire issue is Revenue neutral as when the service tax is paid on Drawing and Designs and since the Drawing and Designs were consumed for installation/ fabrication and erection of plant and machinery in their factory premises, they are eligible to take the credit of such service tax paid by them. It is his submission that they have already paid the entire service tax with interest before issuance of show cause notice and pleads that the provisions of Section 80 be invoked and penalties imposed be set-aside. He would rely upon the decision of this Bench in the case of Essar Steels Limited 2009 (13) STR 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Finance Act, 1994, we find that the appellant while importing the Plants and Machinery had imported the said Drawing and Designs along with the said Plant and Machinery. It is also undisputed that the said Drawing and Designs were declared by the appellant to the authorities as goods and claimed benefit of exemption from the authorities at that time. The Customs authorities have also assessed the said bills of entry and cleared the same from the docks. On such a background, we find that there cannot be any malafide intention attributable to the actions of the appellant in not discharging the service tax liability under the category of Intellectual Property Right Services. Be that as it may, we find that the entire amount of service tax l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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