2018 (1) TMI 1132

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..... Penalty - Held that: - there were confusions with regard to payment of service tax on Multi Level Marketing services under the taxable category of “Business Auxiliary Service” - benefit of Section 80 ibid should be available to the appellant for non-imposition of penalties. The appeal is allowed by way of remand to the Original Authority for quantification of the service tax demand within the normal period of limitation.
Mr. S.K. Mohanty, Member (Judicial) And Mr. B. Ravichandran, Member (Technical) Rep. by Shri S.K. Sarwal, Advocate for the appellant. Rep. by Shri Sanjay Jain, AR for the respondent. ORDER Per: S.K. Mohanty This appeal is directed against the impugned order dated 18.11.2010 passed by the Commissioner of Central .....

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..... frame prescribed under the statute. 4. Heard both the sides and perused the case records. 5. We find that the issue regarding payment of service tax on the activity of Multi Level Marketing was contentious and the same was resolved by the Tribunal vide Final Order No.51818-51855/2015dated 9.6.2015 in the case of M/s.Charanjeet Singh Khanuja & Ors., holding that the Multi Level Marketing activities are conforming to the taxable service of "Business Auxiliary Service". Since the issue was resolved by the Tribunal in 2015, it cannot be said that non-payment of tax by the appellant is attributable to fraud, suppression of facts etc. with intend to defraud the Government revenue. Thus, the show cause notice issued on 21.08.2008 for the period .....

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..... view of the fact that there were confusions with regard to payment of service tax on Multi Level Marketing services under the taxable category of "Business Auxiliary Service", we hold that benefit of Section 80 ibid should be available to the appellant for non-imposition of penalties. Accordingly, the penalties imposed by the Authorities below under Section 76, 77 and 78 ibid are set aside. 7. Therefore, the appeal is allowed by way of remand to the Original Authority for quantification of the service tax demand within the normal period of limitation. However, the penalties imposed against the appellant are set aside. 8. The appeal is disposed of accordingly. [Order dictated & pronounced in open court]
Case laws, Decisions, Judgement .....

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