TMI Blog2017 (8) TMI 1284X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty - Held that: - an identical issue has come up before the Tribunal in the case of Arora Products vs Addl. Commissioner of Central Excise, [2008 (3) TMI 343 - HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR], wherein it was observed that on combined reading of provisions of Sections 11A(2B) and 2(C) of the Central Excise Act, 1944 and in view of the fact that duty leviable has already been deposited prior to the show cause notice, no penalty could be imposed under Section 11AC - appeal allowed. Convention/sponsorship charges for the period 18.04.2006 to 31.12.2007 - reverse charge mechanism - Held that: - in the impugned order no discussion has been made regarding the nature of the charges. When it is so, then we set aside the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were also providing services, facilities or advantages to its members in lieu of periodical payments made by them as per the norms. The facilities are: knowledge updating in respect of fiscal policy, taxation and other economic process, library, camaraderie, mandap etc. They were rendering the service purely for the cause of business and commerce but they were not in the nature of charitable, religious or political in nature. The assessee-Appellants were also collecting service charges from their members under different category viz. Admission fees, ordinary members, associated members, corporate members, service members, additional subscription, young leader forum and affiliation fees etc. and the same were separately shown in the balance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rein the Tribunal has relied upon the ratio laid down in the case of Arora Products vs Addl. Commissioner of Central Excise, 2009 (235) ELT 818 (Raj.), wherein it was observed that on combined reading of provisions of Sections 11A(2B) and 2(C) of the Central Excise Act, 1944 and in view of the fact that duty leviable has already been deposited prior to the show cause notice, no penalty could be imposed under Section 11AC. When it is so, then the imposition of penalty is not justifiable and the same is hereby dropped by setting aside the impugned order in this regard. 8. Another grievance is pertaining to the levy of Service Tax of ₹ 7,98,746/- on convention/sponsorship charges for the period 18.04.2006 to 31.12.2007. The assessee-A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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