9911796707
TMI Blog2008 (3) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... l has been filed against Order-in-Appeal No. 195/2007 CE dated 29.8.2007 passed by the Commissioner of Central Excise (Appeals), Mangalore. 2. In this case, the appellant paid certain commission to the foreign agents to procure export orders for their goods. Since the commission was paid in foreign exchange, the appellants were under misconception that they are not liable to pay Service Tax. However, when the departmental authorities informed that they are liable to pay Service Tax, they immediately paid the Service Tax along with interest much before the issue of show cause notice. The period involved in this case is from 09.07.2004 to 31.3.2006. The show cause notice was issued on 9.10.2006. But even before the issue of the show caus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f service recipient until Section 66A of the Finance Act came into force w.e.f. 18/04/2006, which principle is accepted in several decisions rendered including inter alia, in the following cases: a. Foster Wheeler Energy Ltd. Vs. CCE - 2007 (7) STR 443 b. Active International Vs. CCE - 2007 (8) STR 608 c. Lakshmi Mills Co. Ltd. Vs. CCE - 2008 (9) STR 214 (iii) Thus for the above reason alone, the Service Tax could not have been demanded from the service recipient prior to 18/04/2006 and hence for this reason alone, the Service Tax deposited with interest would become refundable and further no penalty could be imposed at all thereto. (iv) Further, in the facts and circumstances herein, there was a bona fide doubt reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered by the foreign agent abroad for procuring orders for export prior to insertion of Section 66A which came into force only w.e.f. 18.4.2006. He also relied on number of case laws which are cited supra. In any case, in this appeal, the main contention is with regard to the penalty imposed. Therefore, we are not going into the question of leviability to Service Tax as the appellants had already paid the same and they are mainly challenging the imposition of penalty. The appellants have drawn our attention to Section 73 (3) of the Finance Act which is reproduced herein below: Section 73 (3): Where any Service Tax has not been levied or paid or has been short levied or short paid or erroneously refunded, the person chargeable with the Se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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