TMI Blog2018 (7) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... ient would be eligible to avail credit. Thus the situation is a revenue-neutral one - the intention to evade payment of tax cannot be saddled upon the appellant - penalty not warranted. Penalty - Supply of Tangible Goods Service - service tax along with the interest paid immediately on being pointed out by the department - Held that:- The demand has been raised within the normal period and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... audit, it was noticed that for the period April 2013 to March 2014, they had not discharged service tax liability on Security Agency Service and Consultancy Service under reverse charge mechanism as required under Notification NO.30/2012 dt. 20.06.2012 . It was also noticed that they had not discharged their service tax liability on supply of Tangible Goods Service for the same period. SCN was iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hanism. The appellant being service recipient is eligible to take cenvat credit of the service tax paid on these services. Therefore, the whole situation is revenue-neutral. Canvassing this proposition, he relies upon the decision in the case of Dineshchandra R.Agarwal Infracon Pvt. Ltd. Vs CCE Ahmedabad - 2010 (18) STR 39 (Tri.-Ahmd.) and Cosmo Films Ltd. Vs CCE Aurangabad - 2010 (251) ELT 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the penalty imposed. 3. Ld. A.R Shri S. Govindarajan reiterated the finding in the impugned order. 4. Heard both sides. 5. The facts that have been brought out from the records, as well as from the submissions made by both sides, I find that the service tax paid on security services as well as legal consultancy services being paid under reverse charge mechanism, the appellant as a ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintained by the appellant. For the above reasons, I hold that the penalty imposed in respect of Tangible service also is not sustainable and requires to be set aside. 7. In the result, the impugned order is modified to the extent of setting aside penalties imposed without disturbing the duty demand, interest thereon. Appeal is partly allowed in the above terms with consequential reliefs, if a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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