2015 (9) TMI 634

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..... India is required to pay service tax under Reverse Charge Mechanism. Therefore, the contention of the bonafide belief is not sustainable. - appellant has paid the entire amount of service tax, in fact excess amount of service tax within a period of one month of the issuance of show cause notice. Therefore, penalty is required to be reduced to 25% of the Service tax confirmed against the appellant .....

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..... nt and thereafter a show cause notice dated 16.07.2008 was issued to the appellant for demand of service tax under Reverse Charge Mechanism for the period May 2005 to March 2008 and the commissions / service charges paid to their foreign service provider located outside India. The matter was adjudicated. Demand of service tax of ₹ 3,06,678/- along with interest and various penalties were imp .....

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..... refore, appellant were under bonafide belief that they were not required to pay service tax under Reverse Charge Mechanism. Therefore, benefit of section 80 of the Act be given to them and penalty be dropped. In alternate he submits that as the appellant has paid a sum of ₹ 3,11,478/- towards the confirmed demand of service tax of ₹ 2,46,709/-. Therefore, penalty under section 78 be re .....

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..... 006, the appellant was required to pay service tax. Therefore, the contention of the Ld. Counsel for appellant was under bonafide belief is not sustainable. In these circumstances, she prayed that penalty imposed on the appellant is correct by the lower authorities. Therefore, impugned order is required to be upheld. She also submits that the penalty under section 77 of the Act is rightly imposed .....

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..... herefore, the contention of the bonafide belief is not sustainable. Accordingly, same is not acceptable. Therefore, the case law relied upon by the Ld. Counsel are of no help to the appellant. Further, I find that as the appellant has paid the entire amount of service tax, in fact excess amount of service tax within a period of one month of the issuance of show cause notice. Therefore, penalty is .....

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