9911796707
TMI Blog2015 (5) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... ce w.e.f. 16/10/1998. Intelligence was gathered by Preventive section of Mumbai-IV Central Excise Commissionerate that the appellant were not collecting and paying service tax on the value of taxable services required under Chapter V of Finance Act, 1994. Summonses were issued to the appellant who submitted various relevant documents under his letter dated 23/11/2000. As per initial scrutiny of documents the appellant paid service tax amount of Rs. 24,43,782/- for the period January 1999 to June 2000. On scrutiny of bills submitted by them it was also revealed that they had not declared complete details of the professional fees of Rs. 2,45,85,447/- received after 16/10/1998 for the work which they claimed had been done prior to 16/10/1998, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and the Hon'ble High Court of Madras dismissed the petition on 21.01.2000. Another writ petition was filed against the vires of the levy on 19/05/2000 before the Hon'ble Bombay High Court. It is his submission that the appellant during the pendency of the writ in the Hon'ble High Court paid service tax for the period from 16/10/1998 onwards. He would submit that the demands in the case in hand is in respect of three major heads; (i) disputed arrears of service tax paid before the issuance of show-cause notice amounts - Rs. 24,43,782/- (ii) Service tax is received after 16/10/98 for the services provided prior to 16/10/98 as also bills, which were prior to 16/10/98 an amount - Rs. 7,83,241/- (iii) Wrong calculation of service t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Hon'ble High Court of Bombay as in those cases, the appellant was not a petitioner. As regards the service tax liability of Rs. 7,83,241/- it is his submission that the bills which have been raised by the appellant do not appear to be numbered nor does it was the architectural services rendered by the appellants and the services were rendered prior to 16/10/1998. It is his submission that the Revenue is unable to ascertain whether the appellant had rendered services in these cases even after 16/10/1998. As regards the calculation error he fairly submit that there seems to be an error demanding service tax liability of Rs. 91,444/-. 7. We have considered the submissions made at length by both the sides and perused the records. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat case could not have the benefit of ruling of the Hon'ble High Court is incorrect and does not carry the case of the revenue any further as the ratio/view of jurisdictional High Court was on legality and is to be followed. In our considered view, appellant having discharged the service tax liability and the interest thereof, before the due date as was granted by the Hon'ble High Court of Bombay and two other petitioners who were rendering the same services are entitled for the relief as granted by the Hon'ble High Court., i.e. no penalty be imposed on them. We do not find any reason to deny the relief of setting aside of penalties. We also find strong force in the contention raised by the learned Chartered Accountant having d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... countant submits that the appellant have already pre-deposited the entire amount of service tax liability and Rs. 10 lakhs towards penalties, from which this amount may be adjusted. We find from the records that the appellant had deposited entire service tax liability and the amount of Rs. 10 lakhs during the pendency of the proceedings. The adjudicating authority is directed to work out the interest liability on the service tax liability of Rs. 7,83,241/- and after appropriating the said dues of service tax and interest, refund the balance amount back to the appellant. 7.3 As regards the penalties under this issue, we find that the appellant could have entertained a bonafide belief that the services rendered by him being prior to 16/10/98 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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