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TMI Blog2025 (5) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... e Finance Act, 1994. 2. The appellant submitted their reply vide letter dated 01.09.2021 submitting that by virtue of Notification No. 10/2014-ST dated 11.07.2014 hundred percent of service tax liability has been shifted to service receiver. The same was accepted. However, it was observed that the appellant has not filed ST-3 returns as prescribed within time limit under Section 70 of the Finance Act read with Rule 7 of Service Tax Rules, 1994. Hence is liable for penal action under Section 70 of the Finance Act, 1994 read with Rule 7 of Service Tax Rules, 1994. 3. Based on these observations, the appellant was served with the Show Cause Notice No. 16-17/2020-21 dated 20.10.2021 proposing to recover late fee of Rs. 60,000/- for the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST dated 11.07.2014. 7. I also peruse Section 70 of Finance Act 1994 under which the demand is confirmed. It reads as follows: Section 70. Furnishing of returns - (1) every person liable to pay the service tax shall himself asses the tax due on the services provided by him and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency and with such late fee not exceeding twenty thousand, for delayed furnishing of return, as may be prescribed. (2) the person or class of persons notified under sub-section (2) of section 69, shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency as may be prescribed. Perusal clarifies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the person liable to pay service tax. Section 70 of Finance Act read with Rule 7C of Service Tax Rules as invoked by the department does not apply on the appellant. Also when Circular dated 23.08.2007 doesn't require the Return when the assessee is entitled for some exemption. The present appellant, the provider of service also is exempted from paying service tax as Notification No. 10/2014 requires tax from recipient of service under Reverse Charge Mechanism. The appellant also gets covered under the said circular and thus is not liable to file the Service Tax Returns. 10. The circulars are binding as the departmental authorities, the impugned order is contrary to the clarification in the said circular hence is hereby set aside. Conseque ..... X X X X Extracts X X X X X X X X Extracts X X X X
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