9911796707
TMI Blog2014 (11) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... covered, this would not vitiate the show cause notice and, in our prima facie view, the judgment of the Tribunal in the case of ITC Ltd. vs. CST, Delhi (2013 (8) TMI 148 - CESTAT NEW DELHI) cited by the learned Counsel of the appellant is not applicable to the facts of this case. Therefore, at least for the period prior to October 2009, it cannot be said that the Department was aware of the receipt of taxable services by the appellant from M/s Software Services, LC, USA. Only in respect of receipt of service during the period w.e.f. October 2009 it can be said that the Department was aware of the transactions. Therefore, we are of prima facie view that the appellant’s plea that the bulk of the service tax demand is hit by limitation and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 94. On this basis a show cause notice dated 28/09/12 was issued to the appellant for recovery of allegedly non-paid service tax amounting to ₹ 1,84,88,270/- for the period from November 2007 to September 2011 alongwith interest thereon under Section 75 of Finance Act, 1994 and also for imposition of penalty on them under Section 77 and 78 ibid. This show cause notice was adjudicated by the Commissioner, Central Excise and Service Tax vide order-in-original dated 31/03/13 by which the above-mentioned service tax demand was confirmed against the appellant alongwith interest and beside this, penalty of equal amount was imposed on them under Section 78 of Finance Act, 1994 alongwith penalty of ₹ 10,000/- on them under Section 77. Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e received by the appellant is not covered by the definition of Business Auxiliary Service, that the service tax demand for the period from November 2007 to September 2011 made vide show cause notice dated 28/09/12 is time barred and penalty under Section 78 is not imposable on the appellant, as there is no fraud, wilful misstatement, suppression of facts etc. on the part of the appellant, for the reason that the issue of non-payment of service tax on the amount paid by the appellant to M/s Software Services, LC, USA has been raised in course of internal audit conducted by the Departmental officers in October 2009 and thereafter, the Department vide letter dated 18/06/10 had also directed the appellant to pay the service tax on the basis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this is not the case for waiver from the requirement of pre-deposit. 5. We have considered the submissions from both the sides and perused the records. 6. The appellant provide customized solution to publishing industry which includes e-publishing services, such as data capturing, data conversion, type setting, formatting, paging, indexing, copy editing, composition, proof reading, Art work etc. The appellant in terms of their agreement with M/s Software Services, LC, USA had received the services of procuring orders for them and promotion in the USA of the services being provided by them and for these services being provided by M/s Software Services, LC, USA, the appellant were making payment to them in terms of the contract. Prima ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod w.e.f. October 2009 it can be said that the Department was aware of the transactions. Therefore, we are of prima facie view that the appellant s plea that the bulk of the service tax demand is hit by limitation and the longer limitation period under proviso to Section 173 (1) would not be applicable, is not entirely acceptable. Therefore, this does not appear to be a case for total waiver. The appellant, therefore, are directed to deposit an amount of ₹ 60,00,000/- (Rupees Sixty Lakhs) within a period of eight weeks from the date of this order. On deposit of this amount within the stipulated period, the requirement of pre-deposit of balance amount of service tax demand, interest and penalty shall stand waived and recovery thereof ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
