TMI Blog2017 (1) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... I] relied upon by Ld. Counsel covers the issue in hand. The Tribunal in the said judgment held that the demand of service tax on advances received is unsustainable when asessee has paid service tax on the total value of services periodically deducting the same from the advances received - penalty not imposable - demand of interest upheld - appeal disposed off - decided partly in favor of appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipient and adjusted such amount towards the payment that has to be received from service recipient. Though the appellants had discharged the service tax on that part of amount, which were received towards payment of consideration for the services provided, the demand was raised by department for the interest taking into account that the appellants are liable to pay service tax from the date of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ishes that the amounts are mobilization advances and not charges for services provided. Later on providing services, the appellant adjusted the said advances towards the consideration to be paid by the service recepient. While making such adjustment the appellant has paid the service tax for the amount adjusted. That therefore appellants are not liable to pay interest from the date of receiving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covers the issue in hand. The Tribunal in the said judgment held that the demand of service tax on advances received is unsustainable when asessee has paid service tax on the total value of services periodically deducting the same from the advances received. The prayer in the appeal is confined in respect of penalty imposed. Following the decision, I hold that the penalties are not sustainable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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