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TMI Blog2019 (3) TMI 1180X X X X Extracts X X X X X X X X Extracts X X X X ..... amount as a service recipient. Thus, the situation is truly a revenue neutral one. On such score, the appellant cannot be saddled with the allegation of intention to evade payment of service tax. Penalty - Held that:- The Hon’ble jurisdictional High Court in the case of C.C.E., Chennai-IV Vs. M/s. Tenneco RC India Pvt. Ltd. [2015 (7) TMI 342 - MADRAS HIGH COURT] has observed that when the entire exercise is revenue neutral, the assessee could not have achieved any purpose by evading duty - Taking note of the fact that the situation is a revenue neutral one, this is a fit case for setting aside the penalty imposed under Section 78 of the Finance Act, 1994. Penalty set aside - rest of demand upheld - appeal allowed in part. - Applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... discharge the service tax under reverse charge mechanism as per the provisions of Section 66A of the Finance Act, 1994 read with Rule 2(1)(d)(iv) of the Service Tax Rules, 1994. 2.2 A Show Cause Notice was issued proposing to demand the service tax along with interest and also for imposing penalties. After due process of law, the Original Authority confirmed the demand, interest and imposed penalties. Hence, this appeal. 3.1 On behalf of the appellant, Ld. Advocate Shri. M.N. Bharathi submitted that during the relevant period, the appellant had failed to discharge the service tax only due to the bona fide belief that they are not liable to pay the same. They were not aware that service tax has to be incurred under reverse charge basi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance Act, 1994. It is very much true that in case the appellants pay the service tax on reverse charge basis, they would be eligible to avail credit on the said amount as a service recipient. Thus, the situation is truly a revenue neutral one. On such score, the appellant cannot be saddled with the allegation of intention to evade payment of service tax. 7.2 Whatever tax is paid would be eligible as credit for them. The appellant has therefore pleaded only to set aside the penalty imposed under Section 78 of the Finance Act, 1994. The Hon ble jurisdictional High Court in the case of C.C.E., Chennai-IV Vs. M/s. Tenneco RC India Pvt. Ltd. reported in 2015 (323) E.L.T. 299 (Mad.) has observed that when the entire exercise is revenue neu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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