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2018 (2) TMI 1262

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..... method of calculation adopted by the Original Authority in arriving at the portion of exempted service/ taxable service. Appeal allowed - decided in favor of Appellant. - ST/1300/2011- [DB], ST/1519/2011- [DB] - A/50608-50609/2018-CU[DB] - Dated:- 8-2-2018 - Mr. S.K. Mohanty, Member (Judicial) And Mr. B. Ravichandran, Member (Technical) Shri Sanjeev Sachdeva, Advocate for the appellant Shri Amresh Jain, AR for the respondent ORDER Per B.Ravichandran 1. Both revenue and assessee are aggrieved by the order dated 31/03/2011 of Commissioner of Central Excise, New Delhi. The appellant assessee is engaged in providing Life Insurance and Management of investment under ULIP and other related services. They were regi .....

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..... , 2004. The Original Authority held that the appellant did provide exempted services and after quantifying the value of such exempted services and also noting the fact that the appellant assessee did not maintain separate accounts and did not reverse proportionate credit, he proceeded to order recovery of 8 per cent of value of such exempted service. The Ld. Counsel submitted that the whole issue is with reference to maintenance of separate records and procedure to be followed in case of common input services utilized for providing taxable as well as exempted services. There is no dispute with reference to any short payment or non-payment of Service Tax at all, which can attract the provisions of Section 76. 3. The Ld. AR elaborating the .....

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..... e risk cover of the insurance and for management of investment and on administrative charges. 5. We have heard both the sides and perused the appeal records. 6. On the appeal by the appellant-assessee we note the Original Authority imposed penalty under Section 76. The provisions of Section 76 are as below:- 76. Penalty for failure to pay service tax: Any person, liable to pay service tax in accordance with the provisions of section 68 or the rules made under this Chapter, who fails to pay such tax, shall pay, in addition to such tax and the interest on that tax amount in accordance with the provisions of section 75, a penalty which shall not be less than 2[one hundred rupees] for every day during which such failure contin .....

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..... liability for the services rendered by the appellant-assessee. The appellant-assessee collects ULIP Insurance premium which is essentially an insurance policy having investment as well as risk cover. The appellant assessee is discharging Service Tax on the portion of amount allocated to the risk cover under Life Insurance Service. A substantial portion of premium collected under ULIP is invested in various financial instruments. The Appellant-assessee is managing such investment on the behalf of the insured. For managing such investment and also managing the policy the appellant assessee allocates some portion of the premium towards administrative expenses etc. Service Tax is paid on such administrative charges under the category of Manage .....

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