2018 (9) TMI 1276 - AT - Service Tax

Short paymnet of Service Tax - appellant was collecting Service Tax from their clients on gross value of the services whereas less Service Tax was being paid by them on the reduced assessable value - demand of differential amount alongwith interest and penalty. Held that - The appellants have not disputed the fact that they have collected extra Service Tax from their clients. As such the same is required to be paid by the assessee and accordingly the demand along with interest confirmed. Penalty - Held that - There can be a bona fide belief on the part of the assessee that the tax is required to be paid only on the assessable value of the services and in the absence of any evidence to reflect any mala fide on them, penalty set aside. Appeal allowed in part.

Summary

The Appellate Tribunal CESTAT ALLAHABAD confirmed a Service Tax demand of Rs. 43,420 against the assessee for collecting extra tax from clients. The penalty was waived due to lack of evidence of mala fide intent.