9911796707
TMI Blog2023 (11) TMI 827X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant had been making payments to their suppliers only after 60 days. In those cases, where suppliers want early payment, the appellant made the payments by deducting 5% of the value and such amounts were shown in their Balance Sheet as income received under "Bill Discounts". The Department was of the view that the amounts received as "Bill Discounts" would fall under the taxable service as per Section 65 (12) of the Finance Act, 1994 in the category of "Banking and Other Financial Services". Show Cause Notice was issued dated 17.11.2011 for period 01.01.2009 to 31.08.2011, proposing to demand the short-paid Service Tax along with interest and also for imposing penalties. After due process of law, the original authority confirmed the dema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under such category of services. The Ld. counsel prayed that the provision under Section 80 of the Finance Act, 1994 as it stood during the relevant period may be invoked for setting aside the penalties also. It is prayed that the appeal may be allowed. 3. The Ld. Authorized Representative Shri M. Ambe appeared for the Department. It is asserted by the Ld. AR that the issue stands covered against the appellant in their own case. The activity would definitely fall under Section 65 (12) of the Finance Act, 1994 under the category of Banking and Financial Services as these are in the nature of giving Bill Discounts. The Show Cause Notice has stated that the appellant did not furnish the details of the relevant period within time though reques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and evidences narrated as above, we find that the issue is wholly interpretational in nature and the appellant who is engaged in manufacture was under bona fide belief that their activity of Bill Discounts given to suppliers of spare parts could not amount to activity under Banking and Financial Services. We find that the appellant has given plausible explanation for non-payment of Service Tax during the disputed period. The penalties imposed therefore requires to be set aside. Ordered accordingly. 7. In the result, the impugned order is modified to the extent of setting aside the demand for the extended period and confirming the demand for the normal period. The penalties imposed for the normal period are also set aside. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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