2009 (7) TMI 482 - AT - Service Tax

Service Tax paid with interest before issue of SCN - Penalty- The appellants is one of the dealers/franchisees of Spice Communication (P) Ltd. It was noticed that the appellants is liable to pay tax under the category of Business Auxiliary Services . They have deposited their tax of Rs.7,848/- along with interest of Rs.1,742. in this case Tri.-Del. held that order of the Asst. Commissioner is restored and the order of the Commissioner is set aside. Appeal filed by the appellants is allowed.

Summary

The Appellate Tribunal CESTAT, New Delhi, in the case of M/s. Spice Communication (P) Ltd., addressed the issue of tax liability under the category of "Business Auxiliary Services" for dealers/franchisees appointed by the company. The appellant, one of the dealers/franchisees, received commission and franchise fees, and had paid the tax along with interest. The original authority confirmed the tax demand and imposed penalties under various sections of the Finance Act, 1994. The Commissioner revised the order and imposed additional penalties. The Tribunal, after reviewing the case, found that there was no evidence of tax suppression by the appellants and that the penalties imposed were not justified. The Tribunal reinstated the original order, allowing the appeal filed by the appellants. The judgement was dictated and pronounced in an open court setting.