9911796707
TMI Blog2010 (3) TMI 784X X X X Extracts X X X X X X X X Extracts X X X X ..... red to be excluded while computing the tax liability. Benefit of CENVAT Credit - duty paid on coating material, etc., used in epoxy coating and to avail credit on all input services - HELD THAT:- Both the Commissioner as well as the Tribunal, have concurrently found as a matter-of fact that the respondent was entitled to the me. In the circumstances, no infirmity is found in the order of the Tribunal in remanding the matter to the original adjudicating authority for re-quantification of the demand by extending the above benefits to the respondent. Penalty - Applicability of section 80 - HELD THAT:- Whether the activity carried on the by respondent would amount to production so as to be covered under the category of Business Auxiliary Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DGCEL, Vapi Regional Unit, conducted inquiry by issuing summons on 10-3-2005 to the respondent to collect the required details and documents relevant for investigation. Pursuant to the investigation, it appeared to the appellant that the respondent was liable to pay service tax for the services rendered by it under the head "Business Auxiliary Service", however, it had failed to register itself with the Department for paying such service tax and had also failed to pay appropriate service on the amount collected by it from its clients for applying FBE Coating on the Reinforced Steel Bars supplied by its customers. On scrutiny of records maintained by the respondent for the period 10-9-2004 to 30-6-2005, it was found that the respondent had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustified in setting aside the penalties imposed on the respondent inasmuch as the respondent-assessee had not proved that there was reasonable cause for not paying the service tax. It was submitted that the services rendered by the respondent being amenable to service tax, it was incumbent upon the appellant to get itself registered and discharge its liability to pay service tax in connection with the said service. That having failed to do so, the Adjudicating Authority had rightly imposed penalties under the relevant provisions of the Act. 6. As can be seen from the impugned order of the Tribunal, on merits the Tribunal has held against the respondent by holding that the respondent was covered even under the un-amended definition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order, the Commissioner has confirmed the entire duty demand. Moreover, as noted by the Tribunal the duty demand was also required to be re-quantified in the context of the submission of the respondent that the services prior to 10-9-04, that is, when clause (v) was inserted in the definition of "business auxiliary services" so as to include 'production of goods on behalf of the client'; were required to be excluded. 8. Insofar as the liability of the respondent to pay service tax is concerned it is an admitted position that the liability arose only with effect from 10-9-2004 when clause (v) came to be inserted in the definition of "business auxiliary services" so as to include 'production of goods on behalf of the client'. Hence, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax net with effect from 10-9-2004, the revenue never advised the respondent to start paying tax on the said activity. The Tribunal, therefore, found that it cannot be said that there was any suppression or intent on the part of the respondent to evade service tax and accordingly, did not find any reason for imposition of penalty upon the respondent, and set aside the same in terms of Section 80 of the Act. 10. Section 80 of the Finance Act, 1994 reads thus : "80. Penalty not to be imposed in certain cases Notwithstanding anything contained in the provisions of section 76, section 77 or section 78, no penalty shall be imposable on the assessee for any failure referred to in the said provisions, if the assessee proves that there ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
