BIG BAGS INTERNATIONAL PVT. LTD. Vs. COMMISSIONER OF SERVICE TAX
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Big Bags International Pvt. Ltd.
COMMISSIONER OF SERVICE TAX
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Archana Wadhwa, Member (J) -
(1.)THE appellants were required to discharge their service tax liability in respect of value of sales commission paid to overseas agents, on reverse charge basis. However, they did not do so, even when they were registered with the Service Tax Department and were discharging their service tax liabilities in respect of other services, on reverse charge basis itself. As a result of investigations conducted by the Revenue, it came to notice that the service tax for the period from 2007 -08 to 2011 -12 was not discharged by them in respect of the sales commission paid to overseas agents.
(2.)IN view of the above, the appellant admitted their liability and immediately paid service tax to the extent of Rs. 2,81,349/ - and of Rs. 88,665/ - along with interest.
Thereafter proceedings were initiated against them for imposition of penalties under the provisions of Sections 77 and 78 of the Finance Act, 1994, resulting in passing of the present impugned orders.
(3.)THE appellants contention is that the service tax on the said services was not paid by them inadvertently and there was no element of suppression, misstatement or fraud etc. so as to attract the provisions of Section 78. Learned advocate further submits that as the appellants have immediately deposited the service tax along with interest, before the issuance of the show -cause notice, they should not have been served with any show -cause notice for imposition of penalties.
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