9911796707
TMI Blog2022 (6) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... charges - HELD THAT:- The same are in the nature of renting of immovable property, or for use of space, accordingly this amount is held to be taxable - demand upheld. Taxability under RCM on legal and professional expenses - HELD THAT:- Most of the payments are towards municipal tax, court fee, stamp paper expenses, chartered accountant fee, etc. Thus, it is held that only the amount of Rs. 1,32,626/- is taxable for the period 2016-17 and Rs. 43,751/- for the period April, 2017 to June, 2017. Repair and maintenance expenses - HELD THAT:- There is no contract of service entered into with any particular service provider and amount has been incurred for repair and maintenance by way of petty expenses, most of them are below Rs. 1000/-. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Advocate for the Appellant Shri Mahesh Bhardwaj, Authorised Representative for the Respondent ORDER Heard the parties. 2. The appellant is a dealer in automobiles and also provides after sale service. The issue involved in this appeal-allegation of short payment of service tax, non-payment of service tax on reverse charge basis, irregular availement of Cenvat credit and late fee imposed for late filing, non-filing of return, further Rs. 10,000/- have been imposed by way of penalty under Section 77(1) for failing to appear on the date fixed for hearing. 3. As regards the first issue, I find that the bone of contention is that the appellant have not included receipts under the head 'other income' in their taxable turnover. Learned Coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 1000/-. Accordingly, I hold that there is no service tax attracted on repair and maintenance expenses. 7. So far service tax on security charges under Reverse Charge Mechanism is concerned, I find from para 3.6 of the Show cause notice, that the appellant have already paid service tax on security services under Reverse Charge basis, and have also declared the same in the returns. 8. So far imposition of penalty under Section 77(1) r/w Rule 7 is concerned, the penalty of Rs. 84,000/- & Rs. 10,000/- have been imposed for late filing, non-filing of returns from the period April 2013 to June 2017. 9. As regards the disallowance of Cenvat credit of 3,06,939/- for the period October 2016 to June 2017, the same has been disallowed on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter, the imposition of penalty under Section 77(1) is upheld, however, the amount of penalty is reduced in total to Rs. 25,000/-. So far the penalty of Rs. 10,000/- is concerned for not appearing on the date of hearing, I find from the record of personal hearing in the order-in-original, there is no specific default pointed out by the adjudicating authority. Accordingly, this penalty is also set aside. Thus, the appeal is allowed in part. 13. To sum up I Demand on other income a) On Warranty claim, is set aside. b) On Depot charges, is upheld. ii Tax under RCM a) On legal & professional expenses, set aside in part, upheld on Rs. (1,32,626+43,751), or Rs. 1,76,377/- b) On Repair & maintenance-set aside c) On security service- se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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