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TMI Blog2017 (6) TMI 1069X X X X Extracts X X X X X X X X Extracts X X X X ..... verseas service provider - The issue as to whether service tax was liable on the recipient of service was contentious one - it cannot be said that appellant was involved in the activities concerning fraud, collusion, suppression etc., with intent to evade payment of service tax. Therefore, imposition of penalty u/s 78 ibid can be set aside - appeal allowed - decided in favor of appellant. - Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as raw material for manufacture of veneer. During the course of audit, the Service Tax department observed that the appellant is liable to pay Service Tax on purchase commission paid to the overseas agent under reverse charge mechanism. Subsequently, the appellant deposited the Service Tax along with interest in the capacity of recipient of such services. Upon deposit of the said amount, the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso submits that since it is a case of revenue neutral situation, inasmuch as the Service Tax paid by the appellant is available as cenvat credit, penalty cannot be imposed on this ground also. 4. On the other hand, learned DR appearing for the respondent reiterates the findings of the lower appellate authority. 5. Heard both sides and perused the records. 6. The fact is not in dispute th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 78 ibid in the similar facts and circumstances of the cases. 7. In view of the above, we don t find any merits in the impugned order so far as imposition of penalty on the appellant is concerned. Accordingly, after setting aside the impugned order, we allow the appeal in favor of the appellant to the extent of penalty confirmed therein. (dictated and pronounced in the open court) - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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