9911796707
TMI Blog2018 (6) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice tax on services outsourced had not discharged demand on such amount - in respect of services which the appellant was rendering directly, they have discharged the service to the tune of ₹ 17,05,817/- which is much prior to the issue of show cause notice. Therefore, the penalty imposed on this count cannot sustain - penalty set aside. Appeal allowed in part and part matter on remand. - ST/145/2010 - Final Order No. 40563/2018 - Dated:- 5-3-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) and Shri Madhu Mohan Damodhar, Member (Technical) Shri V. Ravindaran, Advocate for the Appellant Shri S. Govindarajan, AC (AR) for the Respondent ORDER Brief facts are that the appellants are registered with the Service T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntracted by the appellant. It is also argued by the counsel that the said demand is arrived by the department by including the salary, wages and other expenses in the value of taxable services. That these being actual reimbursement expenses have to be excluded from the total taxable value. For this purpose, the matter may be remanded to the adjudicating authority. 3. The ld. AR Shri A. Govindarajan reiterated the findings in the impugned order. 4. Heard both sides. 5. The appellant has made it clear that they are not contesting the amount of ₹ 17,05,817/- which is confirmed and appropriated in the impugned order. The contest in the appeal is confined to the penalty imposed in respect of the said amount of ₹ 17,05, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount cannot sustain. The department has issued the show cause notice incorporating these amounts as well as the amount involved for the services which have been outsourced. The appellant on bonafide belief that they are not liable to pay service tax on services outsourced had not discharged demand on such amount. Taking into consideration all these facts, the penalty imposed requires to be set aside, which we hereby do. The impugned order is therefore modified to the extent of setting aside the penalty imposed and remanding the issue with regard to the demand of ₹ 13,21,165/- which are in respect of services that are outsourced. 7. The appeal is disposed of in the above terms with consequential relief. (Operative portion of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
