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TMI Blog2019 (4) TMI 1084X X X X Extracts X X X X X X X X Extracts X X X X ..... with Section 65(50) of the Finance Act, 1994 and started paying service tax. Respondent Department entertained a view that for the period prior to registration from 15.06.2008 to 30.11.2008, the Appellants are required to pay service tax. This being so, demand of service tax under supply of tangible services for the period prior to such registration, though not disputed, can never be considered to be in conformity to Section 265 of the Constitution of India. Having regard to the fact that investigation by Anti-Evasion Wing had brought all those duty demand from the records maintained by the appellant and considering the fact that the issue is a bonafide dispute of legal interpretation of the newly introduced provision, no malafide can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otaling to ₹ 52,55,120/ - along with applicable interest as per Section 75 of the Finance Act but was issued with show cause. It contested the penalty before the adjudicating authority, who confirm ed 100% penalty on the duty demand, which was unsuccessfully challenged by it before the Commissioner (Appeals) CGST CX (II) Mumbai, that resulted in passing of above order, which is under challenge. 3. In the memo of appeal and during course of hearing of the appeal Learned Counsel for the Appellant Mr. Sachin Chitnis submitted, with reference to judicial pronouncement on each of the issues, that with an intension to mitigate litigation, appellant had paid the service tax, though on merit, it has a good case to contest with. He furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ble Chhattisgarh High Court - 2011 (24) STR 275 (Chat), ITC Ltd report in 2009 (14) STR 847 (T), Keltech report in 2008 (10) STR 280 (T), Andhra Pradesh Paper Mills report in 2011 (22) STR 126 (T), BSBK report in 2009 (16) STR 58 (T) he contained that credit availed on telephone services used by Directors are eligible credits and referring to the decisions of the Tribunal in Panchmahal Steel report in 2014 (34) STR 351 (T - LB), Panchmahal Steel report in 2015 (35) STR 965 (Guj), Nahar Industrial report in 2007 (7) STR 26 (T), Nahar Industrial report in 2012 (25) STR 129 (P H), Cheran Spinners report in 2014 (33) STR 148 (Mad.), Flowserve report in 2014 (33) STR 634 (Kar.) 5. He also submitted that Cenvat credit can be utiliz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f his order in reducing the penalty to 50% after 08.04.2011 and confirming the same at 100% for the disputed period between 01.04.2008 08.04.2011 for which he urged no interference by the Tribunal in the order passed by Commissioner (Appeals). 7. Heard from both the sides at length, peruse the case record, the relevant precedent set on the issues as well as the procedure of service tax applicability on reverse charge mechanism for services availed from service provider/receiver situated beyond the Indian Territory. In respect of insurance auxiliary services and supply of tangible services, in fact, their exist ed, lots of confusion till pronouncement of judgment by Hon ble Bombay High Court. A s found from the additional written submis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to pay service tax. This being so, demand of service tax under supply of tangible services for the period prior to such registration, though not disputed, can never be considered to be in conformity to Section 265 of the Constitution of India. Despite the fact that appellant had obliged to meet duty such demand regarding Cenvat credit on telephone used by the directors and on payment of GTA through Cenvat credit utilization, judicial precedent had set the matter at next and the same needs no elaboration since not disputed by the appellant. Having regard to the fact that investigation by Anti-Evasion Wing had brought all those duty demand from the records maintained by the appellant and considering the fact that the issue is a bonafide d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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