9911796707
TMI Blog2022 (2) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... hri Krishan Garg, Advocate for the appellant Shri Ravi Kapoor, Authorised Representative for the respondent ORDER Heard the parties. 2. The issue in this appeal is whether the penalty under Section 76 and 77 has been righty imposed and whether the credit for the tax paid has not been given, is in accordance with the law. 3. The appellant are registered with the Service Tax Department and pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant /assessee , at any stage and or/forming part of their business receipts. This practice was going on for the last several years, and this amount of subvention was not treated as taxable amount towards any taxable service, by the Service Tax Department or the assessee. Subsequently, the CBEC issued Circular No.87/05/2006-ST dated 6.11.2006, by observing that there were certain doubts in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 6.11.2006. No penalty is imposable on account of suppression or delay in payment of tax. 5. Ld. Counsel also points out that the appellant bonafidely, before issue of show cause notice, on being pointed out by the Department that tax is payable on Subvention, have deposited the tax even for the extended period, vide cheque no.321089 dated 3.7.2020, which has been acknowledged by bank on 6.7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 180 and no penalty is imposable. Accordingly, the appeal is allowed. The penalties imposed under Section 76, 77 and 78 are set aside. 9. In view of my observations, I hold that the appellant is also entitled to credit of the taxes deposited Rs. 1,74,652/- as has been noticed in para 27.3 of the order-in-original dated 9.9.2020 and in para 8 of order-in-appeal dated 6.1.2021. 10. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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