9911796707
TMI Blog2014 (4) TMI 1331X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of the Revenue authorities. Here is a case where learned Commissioner has proceeded to determine the appropriateness or the correctness of the quantum of consideration charged by the appellants to their customers without even having any evidence to show that there was excess collection and the amount shown as service charges was in reality not the correct service charge. The order is totally contrary to the provisions of law, equity and justice. It is very sad to note that even penalty under Section 78 has been imposed equivalent to the service tax levied on the ground of suppression and mis-declaration whereas the whole proceedings have arisen because of lack of understanding of the legal provisions by the lower authorities. Conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder-in-appeal, the appellant is providing services under the category of rail travel agent, rent-a-cab operator, air-travel agency, tour operator and banking and other financial services as enumerated. While describing brief facts of the case, the proceedings were initiated on the ground that the appellants were not showing actual consideration received from their clients towards sale and purchase of foreign currency in the invoices. Basis for this conclusion is no evidence of collection of extra consideration but the point that the appellants were collecting uniform charge of Rs 22.25 for individual clients and Rs. 100/- for corporate clients as consideration for purchase and sale of foreign currency irrespective of the amount of foreign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25 per cent of the gross amount of currency exchanged towards discharge of his service tax liability instead of paying service tax at the rate specified in section 66 of Chapter V of the Act. Provided that such option shall not be available in cases where the consideration of the service provided or to be provided is shown separately in the invoice, bill or, as the case may be, challan issued by the service provider. A combined reading of the definition and the provisions of Rule 6(7B) would clearly show that where the consideration for sale or purchase of foreign exchange is shown separately in the invoice, service tax has to be paid on the consideration so received and the option of service tax payment @ 0.25% of gross amount of currency ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order is relevant and is reproduced below:- I observed that the appellant charged Exchange transaction fee of Rs. 22.25 for individuals and Rs. 100/- for Corporate clients, irrespective of gross amount of foreign currency exchanged. I find that the appellant is charging paltry Exchange Transaction fee and showing the same as consideration towards their service to avoid payment of service tax under Rule 6(7B) of Service Tax Rules. Therefore, the lower authority is justified in demanding service tax @ 0.25% of gross amount of foreign currency exchanged. Nowhere in the Statue there is any provision for demanding service tax on the ground that the consideration charged for providing service is not up to the expectations of the Revenue authoriti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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