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TMI Blog2018 (5) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... o dispute that the appellants have paid the appropriate service tax along with interest on 7.11.2007 i.e. before the issuance of show-cause notice. In such a situation, when the full service tax and interest thereon has been paid before the issuance of show-cause notice, demand cannot sustain. Penalty set aside. Appeal dismissed - decided against Revenue. - ST/530/2008-DB, ST/623/2008-DB - Final Order No. 20613-20614 / 2018 - Dated:- 19-4-2018 - S. S. Garg, Judicial Member And Devender Singh, Technical Member Mr. Bhanu Murthy. J.S, Advocate For the Appellant/Assessee Mr. Matrupsharan, AR For the Revenue ORDER Per : Devender Singh Brief facts of the case are that the appellants are 100% EOU who have been paying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the order of the Commissioner (A), both the Revenue and the appellant have filed these appeals. 2. The Revenue has filed the appeal on the ground that the first appellate authority has wrongly dropped the demand of service tax, interest and equivalent penalty for the period prior to 1.1.2005. The appellant have challenged the confirmation of the demand of service tax along with interest and penalty after 1.1.2005. They have also challenged the imposition of penalty in relation to duty and interest already paid by them before the issue of show-cause notice. 3. Learned advocate for the appellant submits that the issue of leviability of Service Tax on the imported services from abroad under Rule 2(1)(d)(iv) of Service Tax Rules, is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e rules was made applicable by the Government in relation to the Clearing Agents by making customers of the Clearing Agent liable for levy of the service tax. That question has been decided by the Supreme Court by its judgment in the case of Laghu Udyog Bharati (supra) and the Supreme Court has clearly laid down that the imposition of the service tax is on the persons rendering the services and by making a provision in the Rules, levy of tax cannot be shifted to the recipients of the services and the Rule framed which brought about this situation has been declared by the Supreme Court to be invalid. The law laid down by the Supreme Court in its judgment in Laghu Udyog (supra) is squarely applicable to Rule 2(1)(d)(iv), which is relied on in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 006, there is no dispute that the appellants have paid the appropriate service tax along with interest on 7.11.2007 i.e. before the issuance of show-cause notice. In such a situation, when the full service tax and interest thereon has been paid before the issuance of show-cause notice, the Hon ble Karnataka High Court case of C Ahead Info Technologies India Pvt. Ltd. has held as follows: 4. Sub-section (3) of Section 73 of the Finance Act, 1994, provides that, 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 service tax, or the person to whom such tax refund has erroneously been made, may pay the amount of such service tax, chargeable or err ..... X X X X Extracts X X X X X X X X Extracts X X X X
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