9911796707
TMI Blog2013 (1) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... he revenue neutral situation Held that:- On account of revenue neutrality, service tax need not be paid is a proposition which cannot stand to any common sense or logic. It completely nullifies the levy of service tax u/s 66A and therefore, such a proposition should be rejected outright. The law cannot be interpreted in such a way so as to negate the very objective of taxation. When a tax li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receiving services from abroad and on such services, they are liable to pay service tax on reverse charge basis as provided for under Section 66A of the Finance Act, 1994. During the course of search of the premises of the appellant by officers of the Directorate of Central Excise Intelligence, it came to light that the appellant did not discharge the service tax liability amounting to Rs.6,86,160 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ability as soon as the case was detected and before the show-cause notice was issued and the adjudicated. He further contends that the mistake had occurred due to inadvertence and whatever tax they paid on reverse charge basis, they were eligible to take credit. In view of the revenue neutral situation, the appellant could not have been alleged with fraud or intention to evade duty and therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral situation, tax need not be paid and in the instant case demand is bad in law is completely unacceptable. When a tax liability arises it should be discharged in time. If there is a default, then liability to interest is automatic and consequential and therefore, if there is a delay in payment of service tax which is the position in the present case, the appellant is liable to pay interest on d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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