9911796707
TMI Blog2017 (7) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondent ORDER Per: C J Mathew The appellant, M/s Spirax Marshal Pvt Ltd, had been in receipt of services of 'commission agent' from an associated enterprises based outside the country but had failed to discharge service tax liability of Rs. 17,16,130/- under section 66A of Finance Act, 1994 for February 2008, March 2008, December 2008 and March 2009. The amount was paid immediately upon it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue neutral as they are entitled to credit of the amount so paid and that they could not stand to benefit from the non-payment of the tax which would preclude the scope for levy of interest. The liability to penalty under section 78 of Finance Act, 1994 has also been questioned on the ground that the exercise is revenue neutral, that there has been no intention to evade the tax and that there has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 73 of Finance Act, 1994. Concomitantly, it is the contention that there was no other dues because interest was not leviable owing to their not having obtained any pecuniary benefit from the delay in payment of the tax and that there is no mechanism for recovery of interest. We find ourselves unable to agree with this contention; section 75 of Finance Act, 1994 prescribes that interest is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1994 were not in existence. On the contrary, it would appear that the appellant was well aware of the taxable nature of the services received by them from overseas providers as is evident from the partial discharge of the liability to tax on such services. The failure to report the receipt of the services from overseas entities is apparent in the ST-3 returns. 7. For the above reasons we find n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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