TMI Blog2019 (1) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... .2015. Also, subsequently before adjudication he paid the remaining amount but did not pay the interest which was paid subsequently. During the relevant period as per Section 78 the penalty shall be 50% of the Service Tax for the period beginning from 8th April, 2011 up to the date on which the Finance Act, 2015 receives the assent of the President. Further, as per the provision of Section 78 prevailing till March 2015 in respect of accounted transactions penalty imposable under Section 78 of the Act was 50% of the Service Tax. By following the said provision, the Commissioner of Central Tax has held that penalty imposable under Section 78 has been restricted to 50% of the Service Tax for the period till March 2015 and the said decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning to March 2012 August 2012 - ₹ 13,797/-. (iv) Non-inclusion of stationary charges in the taxable value covering the period April 2013 to April 2014 ₹ 2,38,814/-. 2.1 The appellant accepted all the objections raised by the Audit Party except Service Tax demand of ₹ 2,38,814/- pertaining to non-inclusion of stationary charges. Thereafter, the appellant paid the following amounts: (i) Service Tax liability of ₹ 22,47,125/- for the period April 2014 to March 2015. (ii) Service Tax of ₹ 51,170/- under Reverse Charge Mechanism in respect of Manpower Supply Services received by them for the period April 2013 to march 2015. (iii) CENVAT credit of ₹ 13,797/- irregularly availed during 2012 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He further submitted that the issuance of SCN as far as Service Tax of ₹ 10,63,875/- paid and reflected in ST-3 Returns was not legal and proper inasmuch as sub-section 1B inserted in Section 73 of the Act enjoins that Notwithstanding anything contained in sub-section (1), in a case where the amount of Service Tax payable has been self-assessed in the return furnished under sub-section (1) of Section 70, but not paid either in full or in part, the same shall be recovered along with interest thereon in any of the modes specified in Section 87, without service of notice under sub-section (i) 4.1 He further submitted that the SCN issued to the appellant was within the normal period of limitation and there was no requirement of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act has been restricted to 50% of the Service Tax for the period till March 2015. 5. On the other hand, the learned AR defended the impugned order and submitted that in the present case, the appellants have collected the Service Tax and not paid the same in the Government treasury which itself tantamount to malafide on the part of appellant. He further submitted that the appellant also did not file the Return in time and the same was filed much after the audit was conducted and it was found that the appellant has not paid the Service Tax in spite of the fact that they have collected the same from the customers. He further submitted that the Tribunal by catena of decisions has held that where the Service Tax is collected and not paid, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onceded his liability and paid a part of the amount and thereafter filed the Return on 13.07.2015. I also find that subsequently before adjudication he paid the remaining amount but did not pay the interest which was paid subsequently. Further, I find that in view of the various decisions cited by the learned AR wherein it has been consistently held that penalty under Section 78 can be imposed if the assessee collects the Service Tax but does not deposit the same in the Government treasury. Further, I find that during the relevant period as per Section 78 the penalty shall be 50% of the Service Tax for the period beginning from 8th April, 2011 up to the date on which the Finance Act, 2015 receives the assent of the President. Further, I fin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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