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TMI Blog2018 (8) TMI 1595X X X X Extracts X X X X X X X X Extracts X X X X ..... judicating authority and promptly met the demand imposed on it that itself would give sufficient indication about the bonafideness of the appellant in discharging tax liability. As found from the record in respect of service availed from foreign agency also, there was short-payment noticed for a particular period and raised tax amount was promptly paid under the reverse charge mechanism. However without scrutinisation of the relevant document no definite opinion can be formed by this Tribunal regarding tax liability, of the appellant, if exist at all, which is a pre-requisite for imposition of penalty since the payment of duty demand may satisfy compliance of executive instructions and may not be in confirmity to Section 265 of the Constitu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n was given for appropriation of such payment against the demand as well as appropriation of interest paid thereon. Penalty imposed under Section 77 for ₹ 10,000/- and under Section 78 for ₹ 2,16,994/- was also confirmed by the adjudicating authority against which appeal was preferred before the Commissioner (Appeals) that resulted in rejection of appeal for non-payment of pre-deposit. 3. In the memo of appeal and during course of hearing of the appeal the learned Counsel for the appellant Shri Jyoti Ratan, CA submitted that Commissioner (Appeals) had rejected the appeal for non-payment of pre-deposit as penalty was only challenged against which pre-deposit was supposed to be made but because of the fact that tax liability wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notification No. 30/12 dated 20th June 2012 that brought such partial reverse charge mechanism for supply of manpower services into the purview of tax statute. In the said notification with effect from 01.07.2012 in case of supply of manpower for any purpose or service in execution of work contract by an individual, HUF or partnership firm whether registered or not including association of persons are required to pay 25% of service tax and the service receiver is required to pay 75% of the said tax. Going by the backdrop of bringing such provision into the statute book, if various literatures are referred, it can be found that this notification 30/12 has brought a new legislation of taxation to existing system of reverse charge mechanism ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ournal of December 2012 at page 95, this system would bring lot of confusion and uncertainty and among them the first would relate to identification of such vendors. In other words, whether the service provider is from an organized sector or unorganised sector, it would be difficult for the service recipient to trace out the same. Circular no. 30/12 is applicable to individual i.e. proprietorship firm, HUF, partnership firm and association of persons for whom this bifurcation of 75:25 is required to be made for the purpose of payment of service tax. 6. This being the legal position it is surprising that appellant has not challenged the genuineness of duty liability before the adjudicating authority and promptly met the demand imposed on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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