TMI Blog2019 (2) TMI 1614X X X X Extracts X X X X X X X X Extracts X X X X ..... - Indeed, since the demand is under reverse charge mechanism, if the tax is paid, the appellant would be eligible to avail the Credit as input service. The demand is entirely invoking the extended period of limitation. Therefore, being a revenue neutral situation, demand do not sustain. Manpower Recruitment or Supply Agency Services - demand of service tax - extended period of limitation - HELD THAT:- The demand is entirely invoking the extended period - reliance placed in the case of M/S. COROMANDEL INFOTECH INDIA LTD. VERSUS THE COMMISSIONER OF G.S.T. CENTRAL EXCISE, CHENNAI SOUTH COMMISSIONERATE [2019 (1) TMI 323 - CESTAT CHENNAI] - demand do not sustain. Appeal allowed - decided in favor of appellant. - Appeal No.: ST/178/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Period Demand (INR) 1. Demand of Service Tax under Information Technology Software Services ( ITSS ) September 2008 to March 2009 61,70,765/- 2. Reversal of CENVAT Credit availed on Management, Maintenance or Repair Services ( MMR ) April 2006, June 2006, September 2006, February 2009, March 2009, May 2009 2,24,863/- 3. Demand of Service Tax under Management or Business Consultancy Services ( MBC ) 2006-07 to 2007-08 20,21,17 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CESTAT Chennai, particularly paragraph 5.6 of the said decision. 3.2.3 With regard to the issue in Sl. No. 4 of the above table, Ld. Counsel submitted that the demand is made under the category of Manpower Recruitment or Supply Agency Services. During the relevant period, there were two views as to the service tax payable under this category for the supply of IT related services. He pointed out that the decision in the case of M/s. Future Focus Infotech India (P) Ltd. Vs. Commr. of S.T., Chennai 2010 (18) S.T.R. 308 (Tri. Chennai) held the issue in favour of the Revenue whereas the decision in the case of M/s. Cognizant Tech. Solutions (I) Pvt. Ltd. Vs. Commr., LTU, Chennai 2010 (18) S.T.R. 326 (Tri. Chennai) held the is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issues at Sl. Nos. 1 and 2. 6.2 As per Sub-Section 3 of Section 73, when the service tax amount along with interest is discharged prior to the issuance of Show Cause Notice, no penalties are required to be imposed. In fact, no Show Cause Notice even can be issued by the Department. The Hon ble High Court of Karnataka in the case of C.C.E. S.T., LTU, Bangalore Vs. M/s. Adecco Flexione Workforce Solutions Ltd. 2012 (26) S.T.R. 3 (Kar.) has categorically held that no penalties can be imposed when the service tax amount has been discharged prior to issuance of Show Cause Notice. Following the said decision, we are of the view that the penalties imposed in regard to the issues in Sl. Nos. 1 and 2 are unwarranted and require to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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