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M/s. Vedanta Ltd. Versus Commissioner ofCentral Excise Tirunelveli

Imposition of penalty - Section 76 & 78 of the Finance Act, 1994 - Business Auxiliary Service - Reverse charge mechanism - Services for Commission Agents when used in respect of exported products were exempt from payment of service tax by virtue of Notification No. 41/2007 dated 06.10.2007 as amended by Notification No. 12/2008 dated 01.04.2008 and subsequently vide Notification No. 18/2009-ST dated 07.07.2009. available as Cenvat credit - Service tax along with interest had been paid before iss .....

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, the Revenue was not justified in contending that the appellant was hit by the bar under Section 73(4). In this view of the matter, the benefit under Section 73(3) ought to have been extended to the appellant and no notice should have been issued to it.

Also the entire amount of interest paid by the appellant is a cost to the company in a situation where otherwise there can be no dispute that there was an exemption available from the payment of service tax in respect of Commission Ag .....

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tax is being paid on being pointed out by the Department, the benefit of Section 73(3) would not be available would tantamount to rendering Section 73(3) redundant, which is clearly impermissible. In view of the above, I hold that benefit of Section 73(3) was available and accordingly set aside the penalty. The appropriation of tax and interest already paid is upheld. - Decided in favour of appellant - Appeal Nos.ST/41992/2015 - FINAL ORDER No. 40858 / 2016 - Dated:- 27-5-2016 - SHRI P.K. CHOUDH .....

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e any offices in India). The period involved is from October 2007 to August 2011. The appellant was liable to pay Service tax under the category of Business Auxiliary Services under the reverse charge mechanism u/s. 66 (A) of the Finance Act, 1994, though the services for Commission Agents, when used in respect of exported products were exempt from payment of service tax by virtue of Notification No. 41/2007 dated 06.10.2007 as amended by Notification No. 12/2008 dated 01.04.2008 and subsequen .....

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y invoking the extended period. In Para 4 of the Show Cause Notice, it has been observed that service tax amounting to ₹ 19,85,085/- along with interest of ₹ 5,98,919/- has already been paid. The Show Cause Notice also proposed to impose penalty u/s.76 and 78 of the Finance Act, 1994. 2. On adjudication, service tax of ₹ 19,85,085/-was confirmed and appropriated u/s.73 (1) and interest of ₹ 5,98,919/- was demanded and appropriated u/s.75 and penalty of ₹ 3,54,315/- .....

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the audit team they immediately deposited the entire service tax along with applicable interest under reverse charge mechanism under the category of :Business Auxiliary Services . She vehemently argued that Show Cause Notice should only be issued in case of misstatement or suppression of facts or contraventions of any of the provisions of the Act or of the rules made thereunder with an intention to evade payment of service tax. 4. She further submits that the entire dispute is revenue neutral, .....

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iental Steel Trunks Agrico Industries-2011 (23) STR 212 (Ker.) v. Bio-Med Health Care Products (P) Ltd. Vs. CCE, Delhi-2015 (37) STR 381 (Tri.-Del.) 5. It was further submitted that the details of payments made to Commission Agents were present in the Books of accounts of the appellant company, which are public documents, and are made readily available to the departmental officers during the course of audit. In the alternative, she pleaded benefit of Section 80 of the Finance Act, 1994. 6. The r .....

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ble cause for not complying with the statutory provisions. The penalties have been rightly imposed and accordingly the appeal should be dismissed. Since benefit of Section 73 (3) would not be available to the appellant. 7. Having heard the submissions of both sides, and taking note of the fact that the entire service tax along with interest had been deposited before issuance of the Notice, I am of the view that the appellants submission that they were eligible for the benefit of the exemption n .....

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s (India) Ltd.) reported at 2005 (192) ELT 852 (Tri-Mum), the Tribunal has already held that where credit is available to another unit of the same company, the situation was revenue neutral and the allegation of suppression with an intention to evade payment of duty could not have been sustained. To the same effect is the ratio laid down in the following judgements: a)Jay Yushin Vs. CCE - 2000 (119) ELT 718 (Tri-LB) b) CCE Vs. Coca Cola India Pvt Ltd - 2007 (213) ELT 490 (SC) c)CCE Vs. Indeos Ab .....

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