2013 (9) TMI 468

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..... .2008. A show-cause notice dated 25.9.2008 was issued proposing to appropriate tax along with interest already deposited and to impose penalties under Sections 76, 77 and 78 of the Finance Act, 1994. The adjudicating authority confirmed the demand of tax and appropriated the amount of tax and interest as deposited by them. He also imposed penalty of Rs.5,000/- under Section 77, Rs.55,832/- under Section 78 and also imposed penalty under Section 76. Commissioner (Appeals) modified the adjudication order insofar as the penalty under Section 78 was limited to 25% of the entire service tax amount if paid within one month from the date of communication of the impugned order. 2. The learned counsel on behalf of the appellant submits that the app .....

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..... 2005 to 31.12.2007. For proper appreciation, the relevant portion of the said decision is reproduced below:-    "6. I have carefully considered the submissions from both sides and perused the records. The service tax on GTA services was introduced w.e.f. 1-1-2005. Rule 2(1)(d)(v) provided that the service tax in respect of GTA services can be paid by any of the following persons:-        "(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);        (b) any company established by or under the Companies Act, 1956 (1 of 1956)        (c) any corporation established by or under any law;      .....

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..... de by paying service tax along with interest promptly. In these circumstances, I deem it appropriate that the appellants who are dealers of scrap have to be extended the benefit of provisions of Section 80 of the Finance Act, 1994." 5. In the present case the appellants exported the entire goods. In para 2.1 of the Annual Supplement to Foreign Trade Policy 2004 - 09 as produced by the learned counsel states as under:-    "2. Service Tax on Exports    2.1 Exemption from service tax on services (related to exports) rendered abroad    Government has enunciated the principle that we should only export goods and not the taxes and duties thereon. In line with this, services rendered abroad and charged on exports .....

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