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TMI Blog2024 (7) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... particularly, Annexure-B to the Chartered Accountant s certificate and found that there are two parts of the labour charges which have been paid one, pertaining to labour charges paid to the contractors and, the second pertaining to labour charges paid to the locally hired workers by the company and, thereafter considered the findings recorded by the adjudicating authority and affirmed the same - there can be substantial question of law arising on the said issue and the appeal challenging the demand of Rs.25,16,900/- towards service tax is affirmed. Imposition of penalty - HELD THAT:- It is settled legal principle that mere use of the expression fraud and willful mis-statement etc. will not automatically attract the penal provision as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal, Kolkata Regional Bench. The assessee has raised the following substantial question of law for consideration: Whether on the facts and in the circumstances of the case the imposition of penalty and interest is justified for failure to deposit service tax on reverse charge mechanism when no man power has been supplied to the petitioner as because the petitioner engaged contractors for executing job works who hired labours ? Heard Ms. Roychowdhury, learned counsel assisted by Mr. Abhijit Das and Ms. Aratrika Roy, learned advocates for the appellant and Mr. K. K. Maiti, learned counsel assisted by Mr. Tapan Bhanja, learned counsel for the respondent/revenue. Two issues were agitated before us; firstly, with regard to the demand of servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally fraud or willful mis-statement . Bearing this principle in mind, we find in the facts of the present case that except using the word willful mis-statement , nothing has been brought on record to show as to how and under what manner the statement made by the assessee was willful and with an intent to evade payment of tax. On facts, it is seen that the assessee was not under the service tax net, because their activities remained exempted under the service tax regime so far as forward charge mechanism was in vogue. Reverse charge mechanism became operative only from July 1, 2012 in so far as supply of manpower service is concerned. In such situation, it cannot be held that the assessee had made a willful mis-statement so as to invoke Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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