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TMI Blog2024 (7) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... aid amounts which were not paid before issue of show cause notices along with interest. Therefore, there are no infirmity in the order passed by learned original authority insofar as it has not confirmed the demand in respect of all the show cause notices where the service tax amounts were already paid by Right Resources before adjudication. Insofar as the appeal filed by Right Resources is concerned which is against the confirmation of demand of Rs.19,42,737/-, it is noted from para 15 and 16 of show cause notice dated 09.10.2012 that the said demand is a part of the demand raised on such value which represents sale of consumables to the clients and it is satisfying that such value is exempted from payment of service tax through Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from Right Resources by Revenue. On the basis of above stated investigation, a show cause notice 09.10.2012 was issued to Right Resources. The said show cause notice was covering the period from April 2007 to March 2012. Through the said show cause notice, service tax amounting to Rs.4,51,98,495/- was demanded for the period from April 2007 to March 2012 by invoking proviso to subsection (1) of Section 73 of Finance Act, 1994. Further, service tax already paid by Right Resources for the period from April 2007 to March 2012 before issue of show cause notice was proposed to be appropriated. Further, there were proposals for imposition of penalties under Section 76, 77 and 78 of Finance Act, 1994. The demand of service tax of Rs.4.51 crores w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of service tax on goods sold through issue of invoice on which VAT was paid does not arise. They have further stated that service tax is exempted on such value of taxable service as is equal to value of goods and material sold by the service provider to the service recipient from service tax leviable where it can be established that such value represents the goods sold through issue of invoice and VAT is paid on the same and the said exemption is provided through Notification No.12/2003-ST dated 20.06.2003. The original authority adjudicated the above stated four show cause notices through common impugned order-in-original dated 26.05.2016. In respect of the amounts which were already paid by Right Resources before issue of show cause notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, learned Advocate for Right Resources have submitted that the amount of Rs.12,85,404/- confirmed by learned original authority out of demand of Rs.85,06,406/- raised through show cause notice dated 09.10.2012 is out of such material which has been sold by Right Resources to their clients under issue of invoice on which VAT was paid which is clear from para 15 and 16 of show cause notice dated 09.10.2012. The said material is covered by exemption Notification No.12/2003-ST dated 20.06.2003 wherein such value of material is excluded from the value on which service tax is payable wherein it can be established that the said value represents the value of goods sold. He has submitted that para 15 of the said show cause notice clearly indicates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gone through the record of the case and submissions from both the sides. We have also gone through the grounds of appeal in both the appeals. We note that various demands which were raised through the above stated show cause notices were representing amount of service tax which was paid by Right Resources and which was paid during investigation and before adjudication. We note that during the relevant period, sub-section (4A) of Section 73 of Finance Act, 1994 was operational and the said provision has provided for payment of service tax by the service tax assessee voluntarily. We note that Right Resources have paid the said amounts which were not paid before issue of show cause notices along with interest. Therefore, we do not find any in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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