TMI Blog2019 (10) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... under reverse charge mechanism. There cannot be any motive to evade payment of service tax - penalties set aside. Appeal allowed in part. - Appeal No. ST/3167/2011 - A/30787/2019 - Dated:- 16-9-2019 - HON BLE MR. P.V. SUBBA RAO, MEMBER (TECHNICAL) AND HON BLE MR. P. DINESHA, MEMBER (JUDICIAL) Shri G. Prahlad, Advocate for the appellant Shri C. Mallikharjun Reddy, Superintendent/AR for the respondent ORDER PER: MR. P. VENKATA SUBBA RAO 1. Heard both sides and perused the records. 2. The appellant herein is engaged in the manufacture of pre-fabricated building systems, sandwich panel, steel guard rail, steel racking systems, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod of limitation cannot be invoked even for the period post 18.04.2006 because there is no evidence of intention to evade payment of service tax. In fact, if they had paid the service tax, they were entitled to avail CENVAT Credit of the same amount. Therefore, as far as they are concerned, the entire exercise is revenue neutral and hence extended period of limitation alleging fraud, collusion, wilful misstatement cannot be invoked. For the same reason, no penalty should be imposed under section 78 because the elements necessary for imposing the penalty are absent. He relies on the case laws of M/s Jet Airways Limited vs. CST, Mumbai [2016(44)STR 465)] which has been upheld by Hon ble Apex Court in [2017(7)GSTL 35 (SC). Thirdly, he would a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed CENVAT Credit of the service tax so paid. For this reason, Ld. Counsel is not pressing for setting aside of the demand of service tax. As far as penalties are concerned, we find that this is a case of revenue neutrality where the very same assessee would be entitled to CENVAT Credit of the service tax paid under reverse charge mechanism. Hence, we find that there cannot be any motive to evade payment of service tax. For this reason, we find there is a reasonable ground to invoke Section 80 to waive the penalties imposed upon the appellant. 6. In view of the above, the penalties imposed in the impugned order are hereby set aside invoking section 80. 7. Appeal is partly allowed as discussed herein above. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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