9911796707
TMI Blog2018 (12) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... .e.f. 01.07.2012 and why the same shall be equated with suppression of fact and mis-declaration through ST-3. More importantly, neither the show-cause notice nor any documents relied in Order-in-Appeal and order-in-original, any reference is available as to whether the entire 100% tax component was realised by the service provider and deposited in the government to establish that there was occasion of revenue loss to the government. Partial reverse charge mechanism has been introduced by way of Notification 30/2012 dated 20.06.2012. In the said Notification, w.e.f. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of service tax under partial reverse charge mechanism has given rise to this appeal. 2. Fact of the case, in a nutshell, is that appellant is a manufacturer which had undergone EA Audit in March 2015 by the respondent department. It was noticed that for renting motor vehicle, availing of security service and availing of manpower service, appellant had failed to discharge service tax liability under the reverse charge mechanism introduced vide Notification 30/2012 and on being pointed out by the Audit team it had discharged the entire tax liability along with interest payable on those three components of service. But as it had not voluntarily paid the penalty of 15% along with the duty liability, it was put to show-cause notices and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout providing the appellant the opportunity of personal hearing, the adjudicating authority passed the order-in-original confirming the charges in the show-cause. He affirms that appellant was not liable to pay 15% of service tax along with tax and interest due on it as under reverse charge mechanism, the receiver of service has not collected any service tax and withheld the same for deposit for which he prays for dismissal of the order of Commissioner (Appeals). He relied upon the case laws reported in 2017 (346) ELT 378 (Kar.) Jindal Vijayanagar Steel Ltd., 2014 (36) STR J188 Comm vs. Manipal Country, 2012 (28) STR J151 Commissioner vs. U.B. Engineering Ltd., 2018 (5) TMI 484- CESTAT Mercedes Benz India Pvt. Ltd. etc. 4. In respons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so reiterated here by the ld. Manager for the appellant company as discussed above but rejected its plea of denial of principles of natural justice on the ground that there was a gap of six months between date of receipt of show-cause on 03.12.2015 and date of personal hearing given in May 2016 and appellant had not availed the gap period to obtain copy of audit report(wrongly noted as OIO). However, it is found from the show-cause and during the description of the fact by the ld. Commissioner (Appeals) that appellant had failed to discharge the service tax liability. It is not understood as to why a person who failed to discharge the same cannot be equated with his ignorance to follow the new rule of partial reverse charge mechanism introd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducation guide that in the partially reverse charge method, the service provider shall issue an invoice indicating the name, address and registration of the service provider and that of the service receiver, to mention the description of service as well as value of taxable service provided or agreed to be provided and the service tax payable thereon inclusive of service tax payable by service provider. Notification 33/12-ST dated 30.06.2012 indicates that if the turnover of the service provider is less than 10 lakhs, the service recipient shall be obliged to pay his share of service tax (of the service provider also) under the partial reverse charge mechanism. There is no denial of the fact that the idea behind introduction of this procedur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uss the matter with the assessee and advice him to follow correct procedure in future. It is also referred in the said manual that after such submission of audit report, in cases where the disputed amount have not already been paid by the assessee at the spot, demand notices are issued by the department for their recoveries. EA 2000 audit was therefore held to be participative audit. Likewise CERA audit is conducted by the Comptroller and Auditor General of India in respect of receipt and expenditure of the Government of India. It also discharges revenue audit which covers central excise, service tax and customs laws during which time the assesses were examined by CERA audit party to point out the deficiencies, leakage of revenue and non re ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
